Chinese Firms Rush to Secure Samsung Chips Amid US Curbs

The Leader Globe08 Aug, 2024Business

Chinese tech giants like Huawei are stockpiling high-bandwidth memory (HBM) chips from Samsung. These chips are crucial for artificial intelligence (AI) and other advanced technologies. The rush to secure HBM chips comes as the U.S. plans to impose new export restrictions on semiconductors to China. The potential restrictions have created urgency among Chinese companies to ensure a steady supply of these critical components. Chinese companies have increased their purchases of Samsung?s HBM chips since the beginning of the year. This surge in demand has made China a significant market for Samsung, accounting for nearly 30% of its HBM chip revenue in the first half of 2024. The looming U.S. export control package is expected to include new restrictions on HBM chip sales, though the specifics remain unclear.