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Huawei chip suppliers fueling China’s AI potential ahead of Trump 2.0

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Huawei chip suppliers are trying to boost China’s AI growth amid U.S. export controls. Leading Chinese companies are looking for new ways that can help the country deal with the latest chipset regulations and improve its potential in AI.

A new report reveals that Huawei chip suppliers like Tongfu Microelectronics and BOE Technology are significantly contributing to China’s AI and tech sector.

Tongfu is a key supplier to AMD, Texas, NXP, and Huawei. The company has been working on lower-grade HBM chips for a long while (HBM2) which lags 2-3 generations from Nvidia’s latest HBM3E – the most powerful SoC in the world.

The company has initiated the sample production of HBM (high-bandwidth memory) processors. It is also heading towards chip packaging improvements to rival global brands like Samsung, SK Hynix, Micron Technology, and more.

BOE is preparing trial production of a unique chip substrate to enhance the chipset packaging processes. Despite efforts, no one has been able to mass produce such a chip substrate to date in China. Thus, we can expect positive results here.

What is HBM?

HBM is a pile of memory chips (DRAM) that store data quickly and efficiently. It’s the most important part of AI products and leads to high-end performance.

China can’t access the advanced AI HBM chips and other techs following the US restrictions. The Biden administration has further increased the regulations, making the situation even tougher for the blacklisted Chinese companies.

New Solutions

As of now, China and its companies like Huawei, BOE, and more have begun making their own solutions. Native firms are now digging into individual DRAM chips. Apart from Tongfu and BOE, ChangXin Memory Technologies (CXMT) has also joined “China’s AI growth force” to help the native country against US controls.

Even though China is trying every possible move to lessen the burden of US controls, that won’t be easy. One of the Japanese chip equipment suppliers said:

“The most difficult part is how to stack DRAM chips together and still manage to ensure quality and thermal dissipation.”

Yet, the initiative may seemingly lead to better outcomes in the time ahead.

Huawei chip suppliers China's AI

Huawei chip suppliers fueling China’s AI potential ahead of Trump 2.0 (Image Credits: Huawei)

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