What is high bandwidth memory and why is the US trying to block China's access to it?

US Imposes Fresh Export Controls on High-Tech Chips to China #

The US government has announced new export controls on high bandwidth memory (HBM) chips, crucial for artificial intelligence (AI) applications, aimed at China. These restrictions cover both US-made and foreign-produced technology.

HBM chips are advanced memory components, distinguished for their ability to store more data and enable faster transmissions compared to traditional dynamic random access memory (DRAM). Key users of HBM include graphics cards, high-performance computing systems, and data centers. They are fundamental for AI processors like graphic processing units (GPUs) produced by major tech companies.

The restrictions follow previous efforts by the US to curb China’s access to advanced technology, potentially restricting its military capabilities. In a move seen as retaliatory, China has implemented limits on exports of materials critical for semiconductor production.

The impact of these export controls could temporarily slow the development of AI chips in China. While China currently trails behind South Korean companies in HBM production, it is working to enhance its capabilities. Two leading Chinese manufacturers are increasing their production to support the country’s goal of technological self-sufficiency.

HBM offers greater storage space and faster data transfer rates compared to conventional memory chips, facilitating advanced AI applications’ operations. Larger storage allows for handling complex computing tasks necessary for AI, improving performance and efficiency. The analogy of a highway is used, describing HBM’s ability to avoid data bottlenecks due to its broad bandwidth, enhancing processing speed.

Globally, three companies dominate the HBM market, with Hynix holding a 50% market share, Samsung 40%, and Micron 10% as of 2022. By 2025, Micron is aiming to increase its market share significantly. HBM’s high value is reflected in its pricing and the sophisticated manufacturing process required to produce it, involving ultra-thin chip stacking and precision engineering akin to building a house of cards.