Huawei tells some Ascend buyers to source their own HBM

Huawei has told some customers ordering its Ascend AI chips that they must arrange their own high-bandwidth memory, according to The Information, cited by The Decoder on 3 November 2026.

The chip at issue is the Ascend 960DT accelerator, expected in early 2027. Huawei reportedly plans to use large volumes of HBM from Samsung Electronics and SK Hynix. US export restrictions bar both suppliers from selling advanced HBM directly to Huawei, and China's domestic memory makers are not yet producing enough advanced memory to meet demand.

The Information's report does not establish that Huawei itself runs or takes part in smuggling. It concerns customers sourcing memory through their own channels.

How the reported route works

Traders reportedly pair restricted HBM with lower-performance server processors and ship the packages into China, including through Hong Kong. The workaround exploits differences in how export rules assess certain packaged semiconductor products.

Once a package arrives, technicians heat it until the solder softens and lift off the HBM stacks, discarding the processors. Too much heat can damage the memory, so the failure rate is reportedly high. The report described the method, not a confirmed enforcement finding.

US controls focus mainly on advanced logic chips above set performance thresholds, while memory has drawn lighter scrutiny, according to BriefAsia, an industry-analysis outlet. Bundling mixes controlled and uncontrolled items in one shipment, shifting the compliance burden to post-shipment checks.

What the grey-market price shows

A Shenzhen-based broker quoted by The Information said one HBM3E unit that previously sold for several hundred dollars was trading for about $4,000. The report cautioned that the figure came from a single broker and should not be read as an independently verified market-wide price.

An advanced AI processor needs multiple HBM units. At the reported price and quantities, memory alone could cost $24,000 to $32,000 for an AI chip package, the report said. That shows how a memory shortage can erode AI infrastructure economics even when a domestic processor is available.

Why supply stays tight

Samsung said on 29 October 2026 that AI-driven demand was likely to make memory shortages tighter in 2027 than in 2026. Its 2027 HBM supply is sold out. Long-term deals with 10 major customers cover 60% to 70% of its production capacity, according to SammyGuru's account of the call, and Reuters reported it was negotiating with 10 more.

SK Hynix said long-term contracts cover more than half its planned 2027 and 2028 capacity. Samsung and SK Hynix together control about two-thirds of the global memory market, according to Associated Press.