Sources: Huawei recently told some clients that a large share of its upcoming flagship, Ascend 960DT, will run largely on HBM made by Samsung and SK Hynix

High-end AI chips now use memory from Samsung and SK Hynix, bypassing some U.S. restrictions.

Huawei is reportedly informing clients that a significant portion of its upcoming Ascend 960DT flagship AI chip will utilize High Bandwidth Memory (HBM) manufactured by Samsung and SK Hynix. This development comes amid ongoing U.S. restrictions on technology exports to China, which have aimed to limit the country's access to advanced semiconductor components, particularly those crucial for AI development. The Ascend 960DT is Huawei's latest effort to bolster its domestic AI processing capabilities, and its reliance on South Korean memory suppliers highlights the complexities and potential loopholes in current export controls. The specific HBM models to be used and the exact percentage of the Ascend 960DT that will incorporate them are not yet detailed, but the communication to clients indicates a strategic procurement decision by Huawei.

This strategy by Huawei, if widely adopted by Chinese chipmakers, could create a new channel for accessing critical AI hardware components despite U.S. sanctions. The reliance on HBM, essential for high-performance AI processing, suggests that the limitations imposed by the U.S. are driving innovation in supply chain circumvention rather than halting China's AI ambitions. It also places significant pressure on companies like Samsung and SK Hynix, who must navigate complex geopolitical demands and regulatory frameworks.

The market should anticipate increased scrutiny of HBM supply chains and potential adjustments to U.S. export control policies to address these emerging workarounds. This situation underscores the persistent global competition in AI hardware and the intricate interdependence of key technology sectors, even under restrictive trade environments. The long-term impact will depend on how effectively U.S. policy can adapt to these evolving supply chain tactics.