The U.S. government has implemented new export controls on high-tech memory chips, including high bandwidth memory (HBM), used in artificial intelligence (AI) applications, targeting China’s access to this critical technology.
What is High Bandwidth Memory (HBM)?
HBM is a type of memory designed for high-performance computing, offering faster data transfer and larger storage compared to traditional DRAM chips. It’s essential for powering AI systems, including generative AI, and is commonly used in GPUs made by companies like Nvidia and AMD. HBM’s speed and capacity are crucial for running complex AI applications smoothly.
Impact of the U.S. Restrictions
The new export controls, announced in December, build on previous rounds of restrictions aimed at preventing China from gaining access to advanced technologies that could strengthen its military capabilities. While China is still behind in HBM production compared to companies like South Korea’s SK Hynix and Samsung, it is rapidly developing its own manufacturing capabilities. The U.S. restrictions could delay China’s access to the most advanced HBM, though experts believe China will eventually be able to produce its own HBM chips with less advanced technology.
Why HBM is Important
HBM chips provide the speed and capacity necessary for the smooth operation of AI applications, which require significant data processing power. The larger storage and faster data transmission help prevent slowdowns and enhance performance, especially for AI models that train on vast amounts of data.
Top HBM Manufacturers
Currently, South Korea’s SK Hynix dominates the HBM market, followed by Samsung, with Micron also holding a share. These companies are expected to control around 95% of the market in the coming years. HBM is becoming increasingly valuable, with projections indicating it could account for over 20% of the memory chip market by 2024.
HBM Production
The production of HBM is a complex and precise process, involving the stacking of memory chips into multi-layer structures. This requires advanced manufacturing techniques, which makes HBM significantly more expensive than traditional memory chips.
In response to U.S. actions, China has retaliated with its own export controls on materials essential for semiconductor production, such as germanium and gallium. The ongoing trade tensions highlight the global competition for technological leadership, particularly in the field of AI.