Criticism of the Effectiveness of US Export Control Network to China
From IT giants like China's Huawei and Baidu to startups, major foreign media reported on the 6th (local time) that they are stockpiling a large amount of Samsung Electronics' high-bandwidth memory (HBM) in preparation for the US semiconductor chip export controls against China.
A source familiar with the matter said, "These companies started buying semiconductors for artificial intelligence (AI) early this year," adding, "China contributed to about 30% of Samsung Electronics' HBM sales in the first half of this year."
HBM is a type of high-performance memory semiconductor made by stacking multiple DRAMs vertically, essential for processing and transmitting large volumes of data such as AI development. Major HBM manufacturers include SK Hynix, Samsung Electronics, and Micron Technology.
Major foreign media evaluated this as "an example showing how China is preparing to achieve its technological ambitions amid escalating trade tensions between China, the US, and other Western countries." Earlier, foreign media reported that US regulators plan to announce an export control package this month imposing new restrictions on semiconductor shipments to China.
Nori Chiu, Investment Director at White Oak Capital Partners, analyzed, "While China's technology is not yet fully mature, US AI companies have secured the production capacity of other chip manufacturers, leading to exceptionally high demand for Samsung Electronics' HBM from China."
The source said, "It is difficult to estimate the quantity or value of HBM stockpiled by Chinese companies, but buyers range from satellite manufacturers to technology companies like Tencent," adding, "Huawei's AI chip 'Ascend' also utilizes Samsung Electronics' 3rd generation HBM product 'HBM2E'." It was explained that due to the global AI boom, securing cutting-edge models like HBM3E (5th generation) has become difficult.
Meanwhile, despite US export regulations against China, there are considerable voices questioning the effectiveness of export controls as AI chips continue to flow into China through smuggling and other means. Earlier, The New York Times (NYT) reported that Nvidia's AI semiconductors, which are banned from export, are openly sold in the electronics market in Shenzhen, China. In Nvidia's case, it is known that they are preparing to release a China-exclusive product with reduced performance of the latest AI semiconductor 'Blackwell' to avoid US export regulations.
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