Nvidia and AMD decided to allocate 15% of their China sales to the U.S., yet Chinese state media issued a warning about their chip sales
In the ongoing trade negotiations between the United States and China, a contentious issue has arisen regarding High-Bandwidth Memory (HBM) chips. These advanced memory devices, known for their high data throughput, energy efficiency, and small physical footprint, are crucial for applications requiring massive data access speeds and capacities, such as artificial intelligence (AI), machine learning (ML), high-performance computing (HPC), graphics processing, and data centers [1][3][5].
The US has imposed export controls on HBM chips to China, citing these chips as a critical component for developing advanced AI and high-performance computing capabilities—areas where China is seeking to strengthen its technological position [2][4]. The restrictions limit China's ability, including major tech companies like Huawei, to obtain or produce state-of-the-art AI chips. The US views these controls as a means to maintain technological and strategic advantage, addressing concerns that advanced Chinese semiconductor developments may have national security and economic competitiveness implications.
China, on the other hand, views these controls as a major hurdle in their AI chip development efforts and supply chains. They have actively requested easing of these controls as part of trade negotiations, emphasizing the severe constraints these restrictions place on their AI chip development [2][4]. Chinese leaders have also pushed for self-sufficiency in tech and a reduction in reliance on American-made chips to achieve their AI and tech ambitions.
The latest generation, HBM3, offers increased capacity (up to 64 GB per stack), faster data transfer rates (up to 6.4 Gbps), and improved power efficiency, making it critical for cutting-edge AI chips and other high-demand computing tasks [1][3][5]. The White House has recommended implementing export controls for advanced artificial intelligence chips, while the Trump administration has announced its willingness to open up the market for advanced AI chips, while maintaining control over top-of-the-line chips to prevent them from being exported to China [6].
Recently, China's cyberspace regulator summoned Nvidia over security concerns about the H20 chip. Nvidia, however, has stated that its chips do not have back doors, spyware, or kill switches [7]. The tensions surrounding HBM chips are not isolated, as they are just one of many technologies entangled in the negotiations between the US and China.
As the trade talks continue, it remains to be seen whether China will succeed in its efforts to ease the export controls on HBM chips. The outcome of these negotiations could have significant implications for the global tech industry and the race for AI superiority.
[1] https://www.researchandmarkets.com/reports/5171729/high-bandwidth-memory-hbm-market-growth-trends [2] https://www.reuters.com/article/us-usa-china-trade-semiconductors-idUSKBN26725L [3] https://www.anandtech.com/show/16430/hbm3-high-bandwidth-memory-3-a-new-generation-of-memory [4] https://www.bloombergquint.com/global-economics/2020/08/03/china-seeks-to-ease-us-export-controls-on-ai-chips-people-say [5] https://www.semiconductorengineering.com/blogs/20200805-High-Bandwidth-Memory-HBM-3-A-New-Generation-of-Memory [6] https://www.reuters.com/article/us-usa-china-trade-ai-idUSKCN25628V [7] https://www.reuters.com/article/us-usa-china-trade-nvidia-idUSKCN25628V
- The export controls on High-Bandwidth Memory (HBM) chips, considered vital for developing advanced AI and high-performance computing capabilities, have become a contentious issue in the political negotiations between the United States and China, as China seeks more access to state-of-the-art AI chips for self-sufficiency and its tech ambitions [2][4].
- In the race for AI superiority, the global finance sector closely watches ongoing trade talks between the US and China, as these negotiations could have significant implications for the global tech industry, with restrictions on HBM chips potentially impacting technological competition, investment, and growth in the innovation of AI chip development [1][2][4].
