- Huawei may unveil tech to cut China’s reliance on imported HBM chips.
- China aims to build a self-sufficient AI hardware supply chain.
Huawei is expected to unveil a technology that could lessen China’s dependence on high-bandwidth memory (HBM) chips for running artificial intelligence reasoning models, according to the state-run
As reported by the South China Morning Post, the announcement will be made at the 2025 Financial AI Reasoning Application Landing and Development Forum in Shanghai today. The event focuses on AI in the financial sector.
Huawei did not respond to a request for comment on Monday. If confirmed, the development would mark another step by the US-sanctioned company in strengthening China’s AI hardware capabilities and reducing reliance on foreign technology.
HBM chips are a key component in advanced AI systems, particularly for running reasoning models. The models take an already-trained AI system and apply it to real-world data, making decisions based on patterns the AI has learned. HBM is important for these workloads because it can move large amounts of data quickly between the processor and memory.
The current market for HBM is dominated by US companies Micron and AMD, as well as South Korean firms Samsung Electronics and SK Hynix. The chips are often integrated directly into AI processors used in data centres.
China’s two main memory chip producers, Yangtze Memory Technologies and Changxin Memory Technologies, have expanded their capabilities, but analysts say they are still behind their US and Korean competitors in technical performance. That gap has left China dependent on imports for the most advanced HBM products, an issue made more pressing by US export controls on advanced chipmaking tools and technologies.
While China works to strengthen its domestic supply chain, demand for HBM worldwide is rising sharply. Orders have surged as major tech companies build more AI data centres.
Micron, one of the top HBM producers, raised its forecast for fourth-quarter revenue and profit on Monday, citing strong demand for AI infrastructure. The company now predicts $11.2 billion revenue, plus or minus $100 million, up on its earlier estimate of $10.7 billion. Adjusted earnings per share are forecast at $2.85, plus or minus 7 cents, up from a prior estimate of $2.50.
Micron also increased its adjusted gross margin outlook to 44.5%, from 42%, plus or minus 1%, pointing to stronger pricing notably in DRAM product lines.
“We look at all of our different end markets around the world, the pricing trends have been robust, and we have had great success in being able to push that pricing up,” said Sumit Sadana, Micron’s chief business officer, during an industry event on Monday.
Analysts say the combination of limited HBM supply and surging AI demand has allowed producers to raise prices – a reversal from past years when memory chipmakers faced shrinking margins.
SK Hynix, another leading HBM supplier, expects the market for AI-focused memory chips to grow by about 30% per year until 2030.
Trade measures could still affect the sector. The US recently imposed 100% tariffs on certain imported chips, although the duties will not apply to companies that manufacture in the US or have committed to doing so.
In June, Micron said it would increase its planned US investment by $30 billion, bringing its total commitment to $200 billion in the country.
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