Chinese Stockpiling Boosts Samsung's HBM Chip Sales
Chinese tech giants like Huawei and Baidu have been stockpiling Samsung's high-bandwidth memory (HBM) chips in anticipation of potential US export restrictions ¹. This surge in demand has helped China account for about 30% of Samsung's HBM revenue in the first half of this year ². The buying spree has also meant that China accounted for 30% of Samsung HBM chip sales in the first half of the year ³.
The Reason Behind the Stockpiling
The US government is planning to impose additional restrictions on chip shipments to China, which has led to the stockpiling of HBM chips by Chinese firms ¹. The US already has curbs that restrict semiconductor chip firms from exporting 5nm (or more advanced) chips to be sold to Chinese firms ¹. Newer export rules from the US may have specific parameters to restrict the export of HBM chips, which are crucial in AI processing ¹.
Impact on Samsung
The stockpiling of HBM chips by Chinese firms has boosted Samsung's sales, with the company reporting an 82% increase in revenue from China in the first half of 2024 ⁴. Samsung's memory sales increased 142% year-on-year in Q2 to KRW21.7 trillion ($15.8 billion) ³. The company has also combined its various HBM teams into a single team called the HBM Development Team to focus on research and development of next-generation HBM chips ⁵.
Conclusion
The stockpiling of HBM chips by Chinese firms has had a positive impact on Samsung's sales, with the company reporting significant revenue growth from China in the first half of 2024. However, the potential US export restrictions could impact Samsung's sales in the future. The company is taking steps to focus on research and development of next-generation HBM chips to stay ahead in the market.
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