Chinese memory manufacturers have started to gain traction in the HBM segment, as another domestic firm announced trial production of the HBM2 process.
China Sees Massive Traction In The HBM Segment As Several Manufacturers Emerge With Their Solutions
Well, China is competing with others in the AI race with full force, as the nation has now prioritized the development of the technology, seeing it as a matter of national security. Since the Biden administration imposed sanctions on China, we have seen several domestic manufacturers emerge with their own AI solutions, notably Huawei, showing that the geopolitical situation hasn’t held the nation back. In a report by Nikkei, it was revealed that the Chinese company Tongfu Microelectronics has initiated HBM2 trial production, signaling a massive breakthrough for the domestic industry.
It is important to note that Tongfu isn’t the only firm to have started HBM production, as it is now followed by CXMT and Wuhan Xinxin, both of which are said to have made significant strides in the DRAM and HBM industries over the past few months. While you have heard of Tongfu Microelectronics for the first time, the firm is famous in the markets since it is a partner of AMD, and Team Red is a company shareholder.
Apart from this, the firm is the world’s third-largest semiconductor packaging and test service provider, but the HBM venture is something new for them. It is highly likely that they are utilizing memory and semiconductor essentials from a third-party source, and then assembling the HBM2 die with their own expertise.
Interestingly, Tongfu is said to be a supplier of Huawei’s AI processors, although we are unaware whether their HBM has seen formal integration. While HBM2 is almost two generations behind what the global leaders are focusing on, i.e., HBM4, it is undoubtedly a huge development for China, given that, despite the influence of sanctions, domestic development is evolving rapidly. So, it is only a matter of time before we see China competing with the global industry standards, and the recent DeepSeek AI fiasco is an excellent example.