Procurement shifts to customers
Huawei is leaving the sourcing of high-bandwidth memory (HBM), a key component in its AI accelerators, to its customers. Instead of supplying the part through its own supply chain, the company is directing buyers to find their own solutions.
How the smuggling works
Smugglers are exploiting a loophole in U.S. export rules by bundling HBM memory with low-end processors, shipping the packages through Hong Kong and separating the chips at the destination. The method is meant to bypass controls that block direct exports of high-performance memory.
Prices surged within a year
Smuggled HBM3E memory now sells for around $4,000 per unit. The jump illustrates how sanctions feed into procurement costs and how large the unregistered market has grown.
Why it matters
HBM is one of the most critical components determining AI chip performance. As sourcing moves to unregistered channels, both costs and uncertainty over who ends up with these chips are rising.
