China Reviews In-House Production of HBM Needed for AI Processor Chips

China is exploring ways to domestically produce high-bandwidth memory (HBM) chips required for artificial intelligence (AI) processors, the Hong Kong South China Morning Post (SCMP) reported on the 30th. This is interpreted as a move to accelerate semiconductor self-reliance amid U.S. sanctions.

SCMP cited industry sources saying, "It is a tough battle to catch up with global leaders such as SK Hynix, Samsung Electronics, and Micron due to the impact of U.S. sanctions," adding, "The Chinese government has decided that it must be self-sufficient in HBM even if it takes several years." HBM is an ultra-high-performance product that vertically stacks multiple DRAM chips to significantly improve data processing speed compared to conventional DRAM. It is essential for AI, which processes and learns from vast amounts of data.

[Image source=Reuters Yonhap News]

An anonymous source said that Changxin Memory (CXMT), China's largest DRAM manufacturer, is the most promising candidate for HBM production. However, it may take up to four years for mass production and market launch. Headquartered in Hefei, CXMT plans to list on the Shanghai Stock Exchange this year with a corporate value of $14.5 billion, but it was added to the U.S. export control list in October last year.

Previously, SK Hynix, which holds a 50% share of the global market, developed HBM3 in October 2021 and began mass production in June last year. In April, it became the first in the world to develop a new HBM3 product that stacks 12 individual DRAM chips vertically to achieve the highest capacity of 24 gigabytes (GB). On the 21st of this month, SK Hynix announced the development of the 5th generation product HBM3E, which can process data equivalent to more than 230 full HD movies in one second. Mass production of this product is targeted for the first half of next year. Customers such as U.S. companies AMD and Nvidia are reportedly awaiting it. According to a report by technology consulting firm TrendForce, demand for HBM chips is expected to increase by about 60% this year.

Industry insiders evaluated that although HBM chips are high-performance, they can be manufactured without advanced lithography technologies such as extreme ultraviolet (EUV) equipment, so China, which faces difficulties in procuring the latest equipment, may produce its own version. While high-density packaging technology is required, China also possesses relatively advanced companies such as JCET.