Chinese Tech Giants Stockpile HBM Chips Amid U.S. Export Curbs

Chinese tech companies, including Huawei and Baidu, are stockpiling high bandwidth memory (HBM) semiconductors from Samsung due to anticipated U.S. export restrictions. These moves illustrate China's efforts to sustain its technology ambitions amid rising trade tensions. The global semiconductor supply chain continues to feel the impact.

Chinese technology behemoths like Huawei and Baidu, along with numerous startups, are aggressively stockpiling high bandwidth memory (HBM) semiconductors from Samsung Electronics ahead of expected U.S. export restrictions, according to sources.

These companies have increased their purchases of AI-capable semiconductors significantly this year, making China account for about 30% of Samsung's HBM chip revenue in the first half of 2024. This tactical buying highlights China's efforts to advance its technological goals amid escalating trade friction with the U.S. and its Western allies, affecting the global semiconductor supply chain.

U.S. authorities plan to introduce an export control package this month, placing new restrictions on semiconductor shipments to China. Although the details remain unclear, these measures are poised to particularly impact the high-demand HBM chips crucial for advanced AI processors. The U.S. Department of Commerce is continually updating export controls to protect national security and the tech ecosystem.