Smugglers Bypass U.S. Controls to Ship HBM to China
Despite U.S. export controls on advanced semiconductors to China, High Bandwidth Memory (HBM) produced by Samsung Electronics and SK hynix is reportedly being smuggled into China. Smugglers are using a method of packaging HBMs with low-end server processors to bypass export regulations, and then det
Despite U.S. export controls, smugglers are bypassing regulations to ship advanced High Bandwidth Memory (HBM) from Samsung Electronics and SK hynix to China. The method involves packaging HBM with low-end server processors for export, then removing only the memory upon arrival in China. Smugglers face high failure rates and high risks, but significant profits continue to drive the trade.
Chinese companies like Huawei are reportedly using the smuggled memory, including for their advanced Ascend 960DT AI chip. Samsung and SK hynix, controlling over 80% of the global HBM market, are facing potential U.S. scrutiny despite not directly violating regulations. Smugglers justify their actions as patriotic, though competition and potential crackdowns are growing concerns.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
