China is ramping up its efforts to produce High-Bandwidth Memory (HBM), crucial for advancing AI technology, as part of its supply chain indigenization strategy.
China's largest DRAM manufacturer, Changxin Memory Technologies (CXMT), is reportedly building HBM production lines. South Korean media ET News, citing industry sources, reported that CXMT has already acquired some equipment and may place additional orders in the second half of 2024.
Expansion for the next generation HBM
The new HBM production lines are under construction in Beijing and Hefei, intending to produce second-generation HBM (HBM2) featuring eight-layer stacking. Established in 2016 and believed to have substantial support from the Chinese government, CXMT has become China's leading DRAM supplier.
Analysts note China's push for self-sufficiency in AI and semiconductor advancements has long included plans to produce HBM domestically. Despite US sanctions, China remains confident in securing HBM production capabilities. The global industry is also working to develop supply chains for HBM materials, components, and equipment.
Earlier reports from the South China Morning Post indicated that Huawei is collaborating with XMC to develop HBM. Additionally, IC packaging companies such as JCET and TongFu Microelectronics are planning advanced packaging solutions like CoWoS.
HBM deep pockets
South Korean industry observers are wary, anticipating that China's HBM manufacturing will receive significant government backing. In May, China announced a CNY344 billion fund for semiconductor development, leading to speculation that a substantial portion of this investment will be directed toward HBM technology and capacity.
