According to The Information, in a strategic maneuver to circumvent the constraints imposed by US sanctions, Huawei is accelerating efforts to establish domestic production capabilities for High Bandwidth Memory (HBM) within China. This move addresses the limitations that have hampered the company's advancements in AI and high-performance computing (HPC) sectors. HBM technology plays a pivotal role in enhancing the performance of AI and HPC processors by mitigating memory bandwidth bottlenecks. Recognizing its significance, Huawei has assembled a consortium comprising memory manufacturers backed by the Chinese government and prominent semiconductor companies like Fujian Jinhua Integrated Circuit. This consortium is focused on advancing HBM2 memory technology, which is crucial for Huawei's Ascend-series processors for AI applications.

Huawei's initiative comes at a time when the company faces challenges in accessing HBM from external sources, impacting the availability of its AI processors in the market. Despite facing obstacles such as international regulations restricting the sale of advanced chipmaking equipment to China, Huawei's efforts underscore China's broader push for self-sufficiency in critical technologies essential for AI and supercomputing. By investing in domestic HBM production, Huawei aims to secure a stable supply chain for these vital components, reducing reliance on external suppliers. This strategic shift not only demonstrates Huawei's resilience in navigating geopolitical challenges but also highlights China's determination to strengthen its technological independence in the face of external pressures. As the global tech landscape continues to evolve, Huawei's move to develop homegrown HBM memory could have far-reaching implications for China's AI and HPC capabilities, positioning the country as a significant player in the memory field.

Remember that story we brought you regarding the United States government, via its Department of Commerce, banning all exports from national companies to China-based Fujian Jinhua Integrated Circuits Ltd? Well, fast-forward three months, and the Financial Times is reporting, citing two sources close to the matter, that the ban has been too much for the company to take, limiting its ability to import needed parts and tools for its DRAM production. This is tough news for a company that was investing towards finishing construction of a $5.7 billion factory in China's Fujian Province.

If the Financial Times is true, this is one potential player in the DRAM market that goes out the proverbial window. The original reasons given by the Department of Commerce for the export ban referred to the company being supported by "likely U.S.-origin technology", reportedly of Micron origin. Well, now it seems as if it isn't being supported at all.

The Chinese State Administration for Market Regulation has been conducting an anti-monopoly investigation of the global Dynamic RAM market. According to an interview of Wu Zenghou (bureau's head) in the Financial Times, this process has found "massive evidence" against the three companies (Samsung, Hynix, and Micron) that are responsible for the vast majority of this segment. "The anti-monopoly investigation into these three companies has made important progress", points out the investigator. On April these three companies were hit with a price-fixing suit on the same matter in the US, and this investigation seems to confirm those reports.

There is even an older precedent, as Samsung and Hynix were fined both by the US Department of Justice in 2005 and by the European Commission in 2010 on price-fixing allegations. The charges now are similar, and if the companies are found guilty, they could face fines of over $2.5 billion. Some analysts suggest this investigation could be part of the trade war between China and the US, with the former trying to get some leverage pushing the Chinese semiconductor company Fujian Jinhua Integrated Circuit as a bigger player on this market. One that, by the way, is being investigated on allegations of misappropriated trade secrets from Micron. Samsung and SK Hynix have accused China DRAM makers of industrial espionage, too.

The United States government, via the Department of Commerce, has banned all exports from national companies to China-based Fujian Jinhua Integrated Circuits Ltd. The ban, citing "significant risk of becoming involved in activities that are contrary to the national security interests of the United States", demands that a license is required for "all exports, re-exports, and transfers of commodities, software and technology (...) to Jinhua." It then adds that these license applications will be reviewed - always - with a presumption of denial.