Exclusive: Chinese firms stockpile high-end Samsung chips as they await new US curbs, say sources

Chinese tech giants like Huawei and Baidu, along with various startups, are stockpiling high bandwidth memory (HBM) semiconductors from Samsung Electronics in response to anticipated U.S. export restrictions.

This surge in purchasing has made China a significant customer, accounting for around 30% of Samsung’s HBM chip revenue in the first half of 2024.

The increased stockpiling underscores China’s efforts to safeguard its technological progress amid escalating trade tensions with the U.S. and other Western countries. These tensions are influencing the global semiconductor supply chain.

The U.S. is expected to announce new export controls soon, which may include restrictions on HBM chips.

The Department of Commerce has indicated it is reviewing and updating export controls to protect national security and the technological landscape, though specifics of the restrictions and their impact on China remain unclear.

(Reuters)