China plans to develop its own AI memory chips as US sanctions bite hard
HBM
China has decided to take the high-bandwidth memory (HBM) challenge head on, as it seeks to dominate the arena of Artificial Intelligence (AI) powered processors by outfoxing peers from South Korea, Japan and the US.
China, hit hard by Western sanctions, is looking to develop its own advanced HBM sector and become self-sufficient in the highly strategic theatre. However, given that Beijing’s programme is severely restricted by Western sanctions; it may take years for China to come up with HMB products meeting international standards.
China’s uphill battle is up against industry champions like K Hynix, Samsung Electronics and Micron Technology. Catching up with these global leaders is surely not going to be a child’s play for the ambitious communist country.
Major HBM player in China
While China remains highly ambitious regarding its self-sufficiency in the chip sector, it remains to be seen which tech player will eventually bell the cat.
Although, China-aligned South China Morning Post (SCMP) quoted a source as saying that the country’s top dynamic random access memory (DRAM) maker, ChangXin Memory Technologies (CXMT), is the country’s best hope for HBMs.
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CXMT is already planning to undergo a vigorous expansion this year as it plans an initial public offering based on a valuation of US$14.5 billion.
Korea’s domination in the sector
South Korea’s SK Hynix is considered the leader in HBM technology with a 50 per cent global market share. In October 2021, the company introduced HBM3, which then began its mass production in June 2022. They highlighted in their promotional materials that HBM technology was essential for achieving Levels 4 and 5 of driving automation in self-driving vehicles.
Last week, SK Hynix made an announcement about the successful development of HBM3E. This next-generation high-end DRAM for AI applications is currently undergoing product performance evaluations with samples provided to a customer.
Mass production is planned for the first half of 2024, and notable clients including AMD and Nvidia are said to be interested.
Why HBM technology is a game-changer?
HBM technology involves vertically stacked memory chips, similar to floors in a skyscraper, significantly reducing data travel distance.
These stacked memory units are connected to CPUs or GPUs through an ultra-fast interconnect known as the "interposer."
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