Huawei and Baidu Stockpile Samsung HBM Chips Amid Looming US Export Restrictions
Chinese technology giants Huawei and Baidu, alongside various domestic startups, are aggressively stockpiling high bandwidth memory (HBM) semiconductors from Samsung Electronics. This strategic move is a direct response to anticipated new export restrictions imposed by the United States on chip sales to China. According to an exclusive report by Reuters, Chinese firms have significantly increased their procurement of AI-capable semiconductors since the start of the year. Consequently, China accounted for approximately 30% of Samsung’s HBM chip revenue in the first half of 2024. The US Department of Commerce recently stated that it continues to update export controls to safeguard national security and the technological ecosystem, although it declined to provide specific details regarding HBM semiconductors. This development highlights the intensifying tech war between the US and China, with Chinese companies rushing to secure critical components for artificial intelligence development before potential supply chains are disrupted by stricter regulatory measures.
Wire timeline
Huawei and Baidu Stockpile Samsung HBM Chips Amid Looming US Export Restrictions
Chinese technology giants Huawei and Baidu, alongside various domestic startups, are aggressively stockpiling high bandwidth memory (HBM) semiconductors from Samsung Electronics. This strategic move is a direct response to anticipated new export restrictions imposed by the United States on chip sales to China. According to an exclusive report by Reuters, Chinese firms have significantly increased their procurement of AI-capable semiconductors since the start of the year. Consequently, China accounted for approximately 30% of Samsung’s HBM chip revenue in the first half of 2024. The US Department of Commerce recently stated that it continues to update export controls to safeguard national security and the technological ecosystem, although it declined to provide specific details regarding HBM semiconductors. This development highlights the intensifying tech war between the US and China, with Chinese companies rushing to secure critical components for artificial intelligence development before potential supply chains are disrupted by stricter regulatory measures.
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