Chinese Company Tongfu Launches Trial Production of HBM2 Technology; Anticipated for Use in Huawei’s AI Chips

Chinese memory manufacturers are making significant progress in the HBM (High Bandwidth Memory) market. A domestic company has recently announced the trial production of the HBM2 process, marking an exciting development in this field.

In recent times, China’s efforts to compete globally in AI technology have gained momentum. With AI development being seen as crucial for national security, the Chinese government has made it a top priority. Despite the sanctions imposed by the Biden administration, local manufacturers have been stepping up and rolling out their own AI solutions. A case in point is Huawei, demonstrating that the geopolitical challenges have not hindered China’s technological advancements. According to a report by Nikkei, Tongfu Microelectronics, a Chinese company, has launched trial production of HBM2, marking a significant achievement in the domestic memory industry.

However, Tongfu isn’t alone in this venture. It has been joined by other companies like CXMT and Wuhan Xinxin, which have reportedly achieved notable progress in both the DRAM and HBM sectors in recent months. If this is your first time hearing about Tongfu Microelectronics, it’s a well-recognized name in the industry due to its partnership with AMD, with the latter even holding a stake in the company.

In addition to its new HBM initiative, Tongfu is already the third-largest provider globally of semiconductor packaging and testing services. This venture could potentially involve collaboration with third-party sources for the necessary memory components, followed by the in-house assembly of the HBM2 chip, leveraging the company’s expertise.

Interestingly, Tongfu is rumored to be a supplier for Huawei’s AI processors, although it’s still unclear if their HBM units have been officially integrated. While HBM2 technology might appear dated compared to global leaders who are already eyeing HBM4, for China, this represents a remarkable advancement. Despite facing sanctions, the domestic industry’s rapid development is notable. It’s only a matter of time before China starts competing with global standards. The recent DeepSeek AI situation is a testament to this accelerating progress.