Huawei asks customers to source AI chip memory independently

Huawei is reportedly asking some customers to procure high-bandwidth memory (HBM) for its upcoming AI chips themselves, as U.S. sanctions and supply shortages restrict access to components. The company plans to launch the Ascend 960DT early next year and says it will deliver twice the performance of its current chips. However, Chinese suppliers cannot produce enough HBM, while U.S. export rules prevent direct purchases from Samsung and SK Hynix, which together account for more than 80 percent of the global market.

Smuggling networks are exploiting a loophole by combining HBM with low-end server processors that remain below export thresholds. The packages are sent to China through Hong Kong, where workshops separate the components. The process reportedly has a high error rate, but the potential profit remains substantial.

A Shenzhen broker said smuggled HBM3E prices rose from several hundred dollars to about $4,000 per unit in one year. Since each AI chip requires six to eight units, memory alone can cost as much as $32,000. Used Nvidia GPUs and surplus inventory also supply the market. South Korean customs reported $560 million in trade violations by May, including unauthorized or falsely declared strategic goods.