Huawei, Baidu stockpiles Samsung HBM chips amid US export fears

Huawei, Baidu, and many Chinese firms are hoarding Samsung HBM chips. The United States is expected to impose new restrictions on China. Given the coming US curbs, companies and startups are stockpiling HBM to stay on their track.

Reuters reports that Huawei, Baidu, and many Chinese firms stockpiling HBM chips from Samsung. It shows how China is gearing up to keep its technology ambitions on track amid rising trade tensions with the US.

Brands like Huawei and Baidu have aggressively increased their buying of AI semiconductors since early this year. It comes after fears that the United States could bring an export control package, restricting shipments for China’s semiconductor industry.

HBM, commonly known as high bandwidth memory, is a crucial component in the booming AI market. This advanced memory semiconductor allows seamless operations for Generative AI work as well as artificial intelligence servers.

SK Hynix, Samsung and Micron Technology are the only three HBM makers in the world. Since Micron Technology is a US-based company, Chinese OEMs are opting for either Samsung or HK Hynix to hoard HBM for future sustainability.

The Chinese chip demand has been largely focused on the HBM2E model. It is hard to estimate the volume or value of the stockpiled HBM chips. Notably, Chinese chip-designing startup Haawking recently ordered HBM chips from Samsung.