Chinese Companies Stockpile Samsung Chips Amid Anticipated US Export Restrictions
- tech360.tv
- Aug 7, 2024
- 2 min read
Chinese tech giants and startups are stockpiling Samsung's HBM chips in anticipation of potential U.S. export restrictions. U.S. authorities are expected to introduce new export controls targeting semiconductor shipments to China. HBM chips are crucial for advanced processors used in AI applications.
These firms have significantly increased their procurement of AI-capable semiconductors since the beginning of this year. This surge in purchases has led to China contributing around 30% of Samsung's HBM chip revenue in the first half of 2024, according to one of the sources.
The actions taken by these Chinese companies reflect their proactive stance in maintaining their technological advancements amidst escalating trade tensions with the U.S. and other Western countries. The situation also underscores the impact of these tensions on the global semiconductor supply chain.
Reports suggest that U.S. authorities are gearing up to introduce an export control package this month, which will introduce fresh restrictions on chip exports to China, particularly targeting high bandwidth memory chips. The U.S. Department of Commerce, while refraining from commenting on the specifics, emphasised the need to adapt export controls to safeguard national security and technological interests.
HBM chips play a pivotal role in the development of cutting-edge processors like Nvidia's graphics processing units, essential for AI-related tasks. Notably, only three major chipmakers globally produce HBM chips: SK Hynix and Samsung from South Korea, and Micron Technology from the U.S.
Chinese demand for HBM chips has predominantly focused on the HBM2E model, lagging two generations behind the latest HBM3E version. This surge in demand is attributed to the global AI boom, resulting in a scarcity of the more advanced HBM3E model.
Despite challenges in estimating the exact volume and value of stockpiled HBM chips in China, various businesses ranging from satellite manufacturers to tech firms like Tencent have reportedly been acquiring these chips. For instance, sources mentioned that the chip designing startup Haawking recently placed orders for HBM chips from Samsung.
Huawei has been identified as one of the companies utilising Samsung's HBM2E semiconductors for its advanced Ascend AI chip. However, Samsung and SK Hynix declined to provide comments, while Micron, Baidu, Huawei, Tencent, and Haawking did not respond to requests for statements, citing the sensitivity of the matter.
Chinese tech giants and startups are stockpiling Samsung's HBM chips in anticipation of potential U.S. export restrictions.
U.S. authorities are expected to introduce new export controls targeting semiconductor shipments to China.
HBM chips are crucial for advanced processors used in AI applications.
Source: REUTERS
