The U.S. government has imposed new export controls on high-tech memory chips critical to artificial intelligence (AI) applications, specifically targeting high-bandwidth memory (HBM) technology. This includes both U.S.-made and foreign-produced HBM chips.
HBM, which offers superior data storage and faster transmission speeds compared to older technology like DRAM, is crucial for running AI systems, including generative AI, powered by processors like Nvidia’s GPUs and AMD’s chips. These memory chips are used in graphic cards, data centers, autonomous vehicles, and high-performance computing systems, playing a key role in AI applications.
As per the sources of Leaders team, the latest restrictions, announced on December 2, are part of ongoing efforts by the U.S. government to limit China’s access to advanced technologies that could enhance its military capabilities. In response, Beijing has imposed its own restrictions on materials essential for semiconductor manufacturing.
The export restrictions are expected to slow China’s development of AI chips and limit its access to higher-quality HBM, although experts suggest that China could eventually produce HBM independently, though with less advanced technology. China’s major memory chip manufacturers, Yangtze Memory Technologies and Changxin Memory Technologies, are reportedly increasing their production capabilities in this area.
HBM’s enhanced performance, with its ability to store and transmit more data faster, is a significant factor in the growing demand for AI technologies. In terms of market share, South Korea’s SK Hynix, Samsung, and the U.S.’s Micron dominate the global HBM market, with the South Korean companies commanding over 90% of the market.
According to the reports from Leaders team, producing HBM involves a complex manufacturing process where multiple standard memory chips are stacked in layers, making the process both technically challenging and costly. The advanced packaging techniques required to make HBM contribute to its high price point, but they are essential for meeting the data demands of AI technologies.
These export controls represent a significant move in the ongoing global technological race, particularly as countries seek to maintain a competitive edge in AI and other emerging technologies.
