[The US government has imposed fresh export controls on the sale of high-tech memory chips used in artificial intelligence (AI) applications to China. The rules apply to US-made high bandwidth memory (HBM) technology, as well as foreign-produced ones.
HBM chips are a type of memory that enables the storage and transmission of large amounts of data quickly and efficiently. They are commonly used in graphic cards, high-performance computing systems, data centers, and autonomous vehicles, and are essential for running popular AI applications, including generative AI.
The latest export restrictions come as part of the Biden administration’s efforts to block China’s access to critical technology that could give it a military edge. China has retaliated by imposing export restrictions on materials essential for making semiconductors and other high-tech equipment.
Experts say the latest export restrictions will slow China’s development of AI chips and stall its access to HBM. China is developing its own capabilities in HBM, with companies like Yangtze Memory Technologies and Changxin Memory Technologies ramping up capacity to build HBM production lines.
HBM chips have larger storage space and faster data transmission speeds compared to conventional memory chips, making them ideal for AI applications. The larger storage space enables more data to be stored, transmitted, and processed, which enhances AI application performance, while the faster data transmission speed is like a high-speed highway, ensuring smooth and efficient data flow.
The top three companies in the global HBM market are Hynix, Samsung, and Micron, which account for around 95% of the market share. Micron aims to grow its HBM market share to 20-25% by 2025.
The high value of HBM has led manufacturers to dedicate a significant portion of their manufacturing capacity to the production of these advanced memory chips, with HBM expected to account for more than 20% of the total market for standard memory chips by value starting in 2024 and potentially exceeding 30% by next year.
The production of HBM chips is a complex process that involves layering multiple standard memory chips together, which requires top-notch manufacturing expertise and precision. The unit sales price of HBM is several times higher than that of a conventional memory chip, due to the difficulty of manufacturing HBM chips.
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