The Biden administration is contemplating new unilateral restrictions on China’s access to high-bandwidth memory (HBM) chips and the equipment used to manufacture these semiconductors, potentially as early as next month. This move aims to escalate the ongoing tech rivalry between the US and China, particularly in the arena of artificial intelligence.
The proposed restrictions would target the three dominant players in the global HBM market: Micron Technology Inc., SK Hynix Inc., and Samsung Electronics Co. The new rules are designed to prevent these companies from supplying advanced memory chips, such as HBM2, HBM3, and HBM3E, to Chinese firms. These chips are crucial for running AI accelerators developed by companies like Nvidia Corp. and Advanced Micro Devices Inc.
Micron Technology, which has already stopped selling HBM products to China following a ban on its memory chips by Beijing, is expected to be largely unaffected by these new restrictions. In contrast, SK Hynix and Samsung, which rely on US technology and equipment, could face significant impacts. The US may use the foreign direct product rule (FDPR) to enforce these measures, controlling foreign-made products that incorporate even minimal amounts of American technology.
The US Commerce Department stated that it continually assesses threats and updates export controls to protect national security and safeguard technological advancements, emphasizing its commitment to working with allied nations.
The new restrictions are likely to be unveiled as part of a broader package that includes additional sanctions against over 120 Chinese companies and new limits on chipmaking equipment. While US companies would be primarily affected, key allies like Japan, the Netherlands, and South Korea might receive carve-outs.
US officials have been urging South Korea to impose similar controls on chip technology exports to China. The US is also pressuring Japan and the Netherlands, major players in semiconductor equipment manufacturing, to prevent servicing restricted equipment already in China.
Although the new restrictions would directly impact the sale of HBM chips to Chinese companies, it remains uncertain whether high-end memory chips bundled with AI accelerators, such as Nvidia’s H20 chips, would be exempt.
The proposed restrictions also include lowering the threshold for what constitutes advanced dynamic random access memory (DRAM), which could affect the production of high-end memory chips. The aim is to hinder Chinese memory chipmakers like ChangXin Memory Technologies Inc., which is advancing in HBM production.
Additionally, the US plans to identify critical components essential for semiconductor production in China and is considering a zero de-minimis rule, which would impose tighter standards on products containing US technology. Exemptions would apply to several US allies, including Japan and the Netherlands.
In response to the tightening US restrictions, Huawei Technologies Co. is promoting its Ascend AI chips as alternatives to Nvidia and AMD products. However, the sources of HBM used with Huawei’s Ascend chips remain unclear.
