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

High Bandwidth Memory costs rise for all AI chip makers as Samsung and SK Hynix allocate more to Huawei.

Huawei is reportedly informing clients that a significant portion of its forthcoming flagship AI chip, the Ascend 960DT, will rely heavily on High Bandwidth Memory (HBM) supplied by Samsung and SK Hynix. This development highlights a potential avenue through which China may be circumventing U.S. sanctions targeting advanced semiconductor technology. The U.S. has imposed restrictions aimed at limiting China's access to cutting-edge AI chips and the components necessary for their manufacture. The reliance on HBM, a specialized and critical memory type for AI processors, indicates a strategic workaround to procure essential technology despite trade barriers. The Ascend 960DT is positioned as Huawei's next-generation AI processing unit, and its performance will be closely linked to the availability and capability of these HBM modules.

This reliance on HBM from South Korean giants suggests a sophisticated adaptation to U.S. export controls, which have aimed to curb China's AI ambitions. By sourcing critical memory components, Huawei can still advance its AI chip capabilities, potentially narrowing the gap with international competitors. The move also underscores the deep interdependence of the global semiconductor supply chain, where sanctions on one nation can have ripple effects across multiple key suppliers and markets.

The situation poses a challenge for U.S. policymakers seeking to maintain technological dominance and enforce export restrictions. It also signals increased competition in the AI hardware space, as Chinese firms continue to innovate despite external pressures. For the memory chip manufacturers, this represents a significant new revenue stream, albeit one that carries geopolitical complexities and the risk of future regulatory scrutiny.