SINGAPORE/BEIJING – Two leading Chinese semiconductor companies have embarked on the early stages of producing high bandwidth memory (HBM) semiconductors, a critical component in artificial intelligence (AI) chipsets. According to sources and documents, this development marks a significant step in China’s efforts to reduce its dependence on foreign technology, especially amid ongoing tensions with Washington and related export restrictions on advanced chipsets.
China’s advances in HBM technology, even in its earlier versions, reflect the country’s determination to enhance its semiconductor capabilities. The HBM chips are pivotal for AI applications, offering high data processing capabilities with reduced power consumption. Here are the key developments:
- CXMT’s Partnership with Tongfu Microelectronics: CXMT, China’s premier DRAM chip manufacturer, has produced sample HBM chips in collaboration with Tongfu Microelectronics. According to three individuals briefed on the matter, these samples are currently being showcased to potential clients. The collaboration has already shown market impact, with Tongfu Microelectronics’ shares surging by 8% in Wednesday’s trading.
- Wuhan Xinxin’s New Facility: Another major player, Wuhan Xinxin, is constructing a facility aimed at producing 3,000 12-inch HBM wafers per month. Construction began in February this year, as per documents from the corporate database Qichacha.
- Strategic Meetings with International Firms: Chinese semiconductor companies, including CXMT, have been in regular discussions with South Korean and Japanese semiconductor equipment firms to acquire the necessary tools for HBM development.
Despite these advancements, Chinese chipmakers face significant hurdles. They are currently behind global leaders by approximately a decade in terms of technology. However, the strategic importance of HBM development for China cannot be overstated:
- Local Government Funding: Both CXMT and Wuhan Xinxin have received substantial local government funding to drive technological advancements. This aligns with China’s broader strategy to pour capital into its semiconductor sector.
- U.S. Export Controls: The U.S. has imposed stringent export controls, particularly affecting Chinese firms like Huawei, which the U.S. has deemed a national security threat. These controls have restricted access to the latest semiconductor technologies, including HBM3 chips.
Huawei, a prominent Chinese technology company, is also aiming to enter the HBM market. Despite being under U.S. sanctions, Huawei plans to produce HBM2 chips in partnership with domestic companies by 2026. This effort is part of a broader strategy involving several Chinese firms, including Fujian Jinhua Integrated Circuit, which is also under U.S. sanctions.
The global market for HBM is currently dominated by South Korea’s SK Hynix, Samsung, and to a lesser extent, U.S. firm Micron Technology. These companies are at the forefront of HBM technology, producing the latest HBM3 chips and working on fifth-generation HBM3E chips.
| Company | HBM Version | Market Position |
|---|---|---|
| SK Hynix | HBM3 | Leading supplier |
| Samsung | HBM3 | Major player |
| Micron Technology | HBM3 | Emerging competitor |
| CXMT & Tongfu | HBM2 (Developing) | Early development stage |
| Wuhan Xinxin | HBM2 (Developing) | Facility under construction |
- HBM Technology: High bandwidth memory (HBM) is a type of DRAM standard first produced in 2013. It involves vertically stacking memory chips to save space and reduce power consumption, making it ideal for AI applications.
- Current Focus: Chinese firms are concentrating on developing HBM2 chips due to existing technology and resource constraints.
- U.S. Restrictions: While there are no direct restrictions on exporting HBM chips, the technology required to produce HBM3 chips is currently inaccessible to many Chinese firms due to U.S. export controls.
The journey ahead for Chinese chipmakers is long and challenging. Industry experts estimate that Chinese firms lag behind their global counterparts by a decade in HBM technology. However, the collaboration between CXMT and Tongfu represents a significant opportunity for China to advance its memory and packaging technologies.
- Patents and Innovations: CXMT has been actively filing patents related to HBM technology. As of now, the company has filed nearly 130 patents in the U.S., China, and Taiwan. These patents cover various technical aspects of HBM manufacturing and functionalities. Recent filings indicate a focus on advanced packaging techniques, such as hybrid bonding, which could lead to more powerful HBM products.
- Future Developments: CXMT is also investing in technologies needed to create HBM3 chips, which are currently beyond the reach of Chinese firms due to technological and resource limitations.
China’s efforts to develop HBM technology highlight its strategic push to become self-reliant in semiconductor production. Despite the challenges posed by U.S. export controls and the technological gap, Chinese companies like CXMT, Wuhan Xinxin, and Huawei are making significant strides. Their progress in HBM technology is not only crucial for China’s AI ambitions but also for its broader goal of technological independence.
With continued government support and strategic international partnerships, China is poised to make further advances in the semiconductor sector. However, the global semiconductor landscape remains highly competitive, and Chinese firms will need to overcome substantial obstacles to catch up with established industry leaders.
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