Huawei is reportedly advising clients to procure memory for its AI chips independently, as the company faces a shortage of High-Bandwidth Memory (HBM). This move effectively directs buyers toward black market channels to bypass U.S. export restrictions that prevent direct purchases from major suppliers like Samsung and SK Hynix.
The global HBM market is dominated by Samsung and SK Hynix, which control over 80 percent of the supply. To circumvent export bans, intermediaries bundle HBM with low-performance server processors and ship them to China via Hong Kong. Once delivered, specialized workshops extract the memory chips, though the process is noted for high error rates.
The cost of smuggled HBM3E memory has surged significantly, rising from a few hundred dollars to approximately $4,000 per unit within a year. Since each AI chip requires six to eight units, the total memory cost per chip can reach $32,000. Supply also includes stripped older Nvidia GPUs and excess inventory from cancelled projects.
South Korean customs authorities reported trade violations totaling $560 million by May, exceeding the record for the entire previous year. One-third of these violations involved unauthorized exports of strategic goods, including semiconductor chips. Meanwhile, Huawei plans to release its Ascend 960DT chip early next year.
