Chinese artificial intelligence chip manufacturers, including Huawei Technologies and Cambricon Technologies, have increased prices for their AI processors, according to a Reuters report citing three sources familiar with the matter. The price adjustments are attributed to the rising global cost and limited supply of high-bandwidth memory (HBM), a critical component for high-performance computing.
The price increases affect both current and next-generation AI processors designed to compete with products from industry leader Nvidia. These Chinese firms are developing domestic hardware as an alternative for clients in China.
High-bandwidth memory is a type of advanced computer memory essential for training and running large AI models. It allows for significantly faster data transfer between the processor and the memory compared to traditional DRAM, which is necessary for the massive computational demands of AI applications. The global demand for HBM has grown substantially, driven by the expansion of data centers and generative AI technologies.
This surge in demand has placed pressure on the HBM supply chain, which is dominated by a few key producers, including South Korea’s SK Hynix and Samsung Electronics. According to industry reports, these manufacturers are operating at or near full capacity to meet orders from major technology companies worldwide.
The situation in China is compounded by U.S. export controls, which restrict Chinese companies’ access to the most advanced AI chips from companies like Nvidia, as well as the equipment used to manufacture them. These measures, implemented on national security grounds by the U.S. government, have encouraged Chinese technology firms to accelerate efforts in developing a self-sufficient domestic semiconductor industry.
The sources cited in the report did not specify the exact scale of the price increases by Huawei and Cambricon. Neither company has released an official statement regarding changes to its pricing structure for AI processors. Huawei, a privately held company, and Cambricon, which is listed on the Shanghai Stock Exchange, did not immediately respond to requests for comment on the matter, according to the original report.
 cost surges and supply limits are cited, alongside U.S. export controls on advanced chips.){kind=link}