ChangXin Memory Technologies (CXMT), a Chinese memory maker, has begun mass production of HBM2 memory chips, a vital component for cutting-edge AI and high-performance computing processors, according to Tom’s Hardware. This development puts CXMT two years ahead of schedule, underscoring China’s determination to achieve self-sufficiency in memory technology.
“Apparently, China’s desire for self-sufficiency in memory technology is so high that CXMT began to produce HBM2 memory well ahead of schedule, albeit with unknown yields,” reported Tom’s Hardware.
High-bandwidth memory (HBM) is crucial for advanced AI and high-performance computing (HPC) applications due to its superior bandwidth. While CXMT’s HBM2 production lags behind global competitors like Micron, Samsung, and SK Hynix, who are already mass-producing more advanced HBM3 and HBM3E memory, it marks a significant step for China’s domestic tech industry.
However, this progress comes as the US considers new restrictions on China’s access to AI memory chips and the equipment to produce them, a move that would further escalate the tech rivalry between the world’s biggest economies. These measures, as reported by Reuters and the South China Morning Post, aim to prevent companies like Micron Technology Inc., SK Hynix Inc., and Samsung Electronics Co. from supplying Chinese firms with HBM chips, essential for running complex AI programs. The three firms dominate the market for such chips, which are used in supercomputers and some artificial intelligence systems.
The proposed restrictions, expected to be unveiled next month, would encompass HBM2 and more advanced chips, including HBM3 and HBM3E, as well as the tools required to manufacture them. Although Micron is expected to remain largely unaffected due to existing restrictions on its exports to China, the impact on SK Hynix and Samsung remains unclear.
The US is exploring the use of the foreign direct product rule (FDPR) to restrict the South Korean firms, as they extensively utilise technology from American companies like Applied Materials and Cadence Design Systems. The FDPR allows the US to control foreign-made products that incorporate American technology.
China has criticised these potential restrictions, with foreign ministry spokesman Lin Jian stating that such efforts “undermine global trade and hurt all parties.” He emphasised that containment and suppression would not deter China’s development but only strengthen its resolve to achieve technological self-reliance.
The US aims to impede China’s progress in supercomputing and AI, fearing potential military applications. In 2022 and 2023, the US imposed export controls on advanced chips and chip-making equipment destined for China. It also secured an agreement with Japan and the Netherlands to restrict semiconductor manufacturing tools to China.
As the global race for AI chip supremacy intensifies, these developments highlight the complex interplay of technological advancement, geopolitical tensions, and national security concerns. The outcome of the proposed US restrictions remains uncertain, but their potential impact on the global semiconductor landscape could be significant.
Thousands of senior engineers and procurement professionals subscribe to our LinkedIn Market Intel newsletter – get yours here
For more help with looking at supply chain options, contact Astute Electronics
