China actively buys chips ahead of possible US sanctions: Reuters

Chinese tech giants such as Huawei and Baidu are actively buying high-bandwidth memory semiconductors from Samsung in preparation for possible US sanctions on Chinese chip exports. In particular, companies have significantly increased the purchase of semiconductors that support artificial intelligence, informs Reuters with reference to sources.

Such actions by China indicate the country’s desire to maintain its technological ambitions against the background of growing economic tensions with the United States and other Western countries. It also demonstrates how the standoff is affecting global semiconductor supply chains.

According to Reuters sources, the US plans to announce a new package of export controls in August, which involves the introduction of new restrictions on the supply of semiconductors to China. Washington intends to specify parameters to limit China’s access to high-bandwidth chips.

HBM chips are key components for the development of advanced processors used in artificial intelligence. They are produced by only three companies: SK Hynix and Samsung from South Korea and Micron Technology from the USA.

Reuters notes that it is currently difficult to estimate the amount of HBM chips China has stockpiled. However, it is known that they are actively being bought by various companies, from satellite manufacturers to technology firms.

Earlier, the national security adviser of the US president, Jake Sullivan, said that Washington is preparing new sanctions against China. Chinese companies that support Russia in the war against Ukraine, including banks, will fall under the restrictions.