In addition to Huawei and Wuhan Xinxin, the project also involves integrated circuit (IC) packaging companies Changjiang Electronics Tech and Tongfu Microelectronics, SCMP sources revealed. These two companies are in charge of technology to stack various types of semiconductors such as GPUs and HBMs into a single package.

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3D drawing of an HBM chip inside an advanced AI processor on a server. Photo: Shutterstock

Huawei’s foray into the HBM chip space is the latest attempt to escape the clutches of US sanctions. The Chinese company made a surprise comeback in the 5G smartphone market in August 2023, launching a high-end phone powered by an advanced 7nm chip. The breakthrough has drawn attention and drawn close scrutiny from Washington as it tries to figure out how Beijing achieved the milestone despite limited access to the technology.

Although China is still in the early stages of HBM chip development, its moves are expected to be closely watched by analysts and industry insiders.

In May, media reported that Changxin Memory Technologies, China’s leading DRAM maker, had developed a prototype HBM chip with Tongfu Microelectronics. A month earlier, The Information reported that a group of mainland companies led by Huawei was looking to ramp up domestic HBM chip production by 2026.

In March, Wuhan Xinxin revealed plans to build an HBM chip factory with a capacity of 3,000 12-inch wafers per month. Meanwhile, Huawei has been trying to promote the Ascend 910B chip as an alternative to the Nvidia A100 chip in domestic AI development projects.

SCMP said Huawei’s HBM initiative still has a long way to go, as the world’s top two manufacturers – SK Hynix and Samsung Electronics – will hold almost 100% of the market in 2024, according to research firm TrendForce. US chipmaker Micron Technology will hold 3-5% of the market.

Major semiconductor design companies such as Nvidia and AMD, along with Intel, are using HBM in their products, driving global demand. However, according to Simon Woo, managing director of Asia-Pacific technology research at Bank of America, China’s semiconductor supply chain is not yet ready to seize the opportunity from this booming market. He said the mainland is mainly focused on low- to mid-end solutions, not yet capable of making high-end memory chips.

(According to SCMP)