Huawei is asking its customers to procure the high-performance memory for its AI chips themselves. In doing so, the Chinese company is effectively shifting procurement to a market where the parts can only be obtained through smuggling channels.
According to the available information, smugglers are exploiting a gap in US export rules. They bundle High Bandwidth Memory (HBM) with simpler processors that do not fall under the restrictions and ship the packages via Hong Kong. There, the chips are separated again. In this way, the memory reaches the market, where it is indispensable for powerful AI accelerators.
According to the report, the price of smuggled HBM3E memory has risen to around 4,000 US dollars per unit within just one year. The increase shows how scarce supply has become outside the regular supply channels. At the same time, it becomes clear how strongly export controls restrict access to this technology.
For customers, the requirement means that they bear the procurement risk themselves. Sourcing through informal channels is not only expensive but also touches on the legal situation in the countries through which the deliveries pass. Huawei's approach also raises the question of how far manufacturers can outsource their supply chains when they can no longer legally obtain certain components.
The case also illustrates that competition for AI hardware is increasingly being decided by supply chains and export rules, not by computing power alone. Whoever has access to memory such as HBM thereby helps determine which AI systems can be built at scale at all. Whether and how US authorities will respond to the described circumvention is not clear from the available information.