# Huawei Shifts HBM Sourcing Strategy Amid US Export Restrictions Huawei reportedly asks customers to source restricted high-bandwidth memory independently due to supply chain bans. - **Source:** [The Next Web](https://brifing.si/source/afe24b20-b275-4c19-b9a6-8bb3c8babae7) - **Published:** 2026-11-04 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/ad1e0391-c514-4f8f-8927-1bc6679bd13f ## Supply Chain Constraints Huawei is reportedly instructing customers to procure their own high-bandwidth memory for the upcoming Ascend 960DT AI chip. This shift follows stringent US export regulations that prohibit Samsung and SK Hynix from selling HBM directly to Chinese entities. Domestic production currently fails to meet the required technical performance standards for advanced AI. ## The Packaging Loophole US export rules classify chip packages based on the processor's function rather than the attached memory. Smugglers exploit this by bonding restricted HBM to low-performance processors in third-party facilities across Taiwan and Southeast Asia. These packages enter China under the processor's export code, bypassing the standalone HBM trade restrictions currently in place. ## Logistics of Smuggling Once packages arrive in Hong Kong, couriers transport them into mainland China via physical transit methods like luggage or vehicle compartments. Technicians then heat the packages to remove the memory stacks from the processors. This manual extraction process is highly inefficient, frequently causing the delicate memory components to crack or warp during removal. ## Surging Market Costs The scarcity of HBM in China has triggered a massive price escalation in the black market. A single HBM3E unit, which cost several hundred dollars a year ago, now trades for approximately $4,000. This price surge reflects the extreme difficulty of maintaining a consistent supply chain under current US regulatory pressure and oversight. ## Regulatory Compliance Stance Both Samsung and SK Hynix have officially stated their adherence to international export control laws. SK Hynix specifically noted that it has ceased all direct supply to Huawei since 2020. Despite these claims, the illicit flow of memory components continues to complicate the enforcement of US trade policies regarding advanced semiconductor technologies. ## Domestic Production Challenges While Chinese manufacturer CXMT has initiated production of HBM3E, reports indicate that their current yields remain low. This inability to scale high-quality production forces reliance on smuggled goods to sustain AI development. Meanwhile, global memory shortages are projected to persist until 2030, further tightening the availability of these critical hardware components. ## Legal Enforcement Actions US authorities are actively pursuing criminal cases related to the illicit export of AI hardware. In October, prosecutors charged a California resident for smuggling AI servers into China. These legal actions signal a broader effort to close loopholes in the semiconductor supply chain and deter individuals from facilitating the transfer of restricted technology. ## Strategic Industry Implications The reliance on smuggled components highlights the severe impact of export controls on China's AI infrastructure. As long as domestic alternatives remain insufficient, the reliance on high-risk, high-cost grey market channels will likely continue. The situation underscores the ongoing tension between global semiconductor supply chains and the geopolitical enforcement of technology restrictions. ## Sources covering this story - https://thenextweb.com/news/huawei-hbm-smuggling-samsung-sk-hynix-ascend-960dt — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._