Huawei Plans In-House HBM Production For Next-Gen AI Products Targeted At China

Huawei is gearing up to establish its in-house supply chain of HBM memory, as the manufacturer backs the development of in-house HBM technology.

Huawei Technologies, a group of firms focused on semiconductor and technology growth, has started to divert its focus to the attractive HBM markets, according to a report by The Information. The alliance now pairs up with companies involved in the memory business, such as Fujian Jinhua Integrated Circuit. It is disclosed that Huawei plans to mass-produce HBM chips somewhere near 2026, with initial technology expected to be the relatively older HBM2 whereas HBM4 is expected to be deployed by 2025-2026. However, considering Chinese tech limitations, it is still decent.

Now, HBM plays a crucial role in the dynamics of the AI markets, especially when manufacturing AI accelerators, like the Huawei Ascend chip, which has made huge strides in domestic markets. In modern times, the supply of HBM in China is confined to a greater level, where top-edge firms like SK Hynix and Samsung are restricted in supplying their technology.

To counter the disparity, the company has decided to move one step ahead with in-house HBM production, including new companies to form alliances and help them catalyze efforts on advanced chip production.

While we can't comment on when Huawei can achieve a breakthrough with their HBM efforts, it's interesting to see them at least initiating a collaboration with local companies for self-subsistence. Realizing that HBM markets are experiencing a bull run, Huawei Technologies could exceptionally be on its way to grasping some hefty finances out there, not to mention how big of an upgrade their Ascend AI chips will receive if HBM shifts to local production, providing a boost to Chinese AI capabilities in the future.