Huawei is expected to announce a new technology designed to reduce China’s dependence on high-bandwidth memory (HBM) chips for running artificial intelligence reasoning models, according to Securities Times. The announcement is scheduled for the 2025 Financial AI Reasoning Application Landing and Development Forum in Shanghai, an event focused on AI adoption in the financial sector, as reported by South China Morning Post. Huawei did not provide a response to media inquiries earlier in the week, but if confirmed, the move would represent another effort by the US-sanctioned company to bolster China’s AI hardware capacity and reduce its reliance on imports.
HBM chips play a critical role in advanced AI systems, particularly in reasoning tasks, which involve applying trained models to real-world data for decision-making. Their ability to transfer large amounts of data at high speed between processors and memory makes them indispensable for such workloads. Currently, the HBM market is dominated by US producers Micron and AMD, alongside South Korean leaders Samsung Electronics and SK Hynix. These companies integrate HBM directly into processors powering data centres worldwide, leaving China’s domestic supply chain heavily dependent on imports. Although Yangtze Memory Technologies and Changxin Memory Technologies have expanded production, analysts note that both remain technically behind their US and Korean rivals, leaving a gap that has been further strained by US export restrictions on advanced chipmaking tools.
Global demand for HBM has surged in recent years as technology companies race to build AI-focused data centres. Micron recently raised its financial outlook for the fourth quarter, citing stronger demand for AI infrastructure. The company now forecasts revenue of $11.2 billion, compared with a previous estimate of $10.7 billion, while also raising adjusted earnings expectations to $2.85 per share from $2.50. Micron’s adjusted gross margin was also revised upward to 44.5 percent from 42 percent, supported by strong pricing trends across DRAM product lines. Micron’s chief business officer, Sumit Sadana, highlighted during an industry event that robust pricing momentum across markets has enabled the company to strengthen its position in the memory sector.
Other suppliers are also anticipating rapid growth. SK Hynix has projected the market for AI-focused memory chips to expand at an annual rate of around 30 percent through 2030. Analysts attribute this growth to the limited supply of HBM, combined with rising demand from AI system developers, allowing producers to increase prices after years of squeezed margins. Trade policy developments remain an important factor shaping the sector. The US recently imposed tariffs of up to 100 percent on certain imported chips, although these measures will not apply to companies manufacturing in the US or committing to future domestic production. In June, Micron announced plans to expand its US investment by an additional $30 billion, raising its total commitment to $200 billion. Against this backdrop, Huawei’s expected unveiling in Shanghai highlights ongoing efforts within China to narrow the technology gap, reduce import reliance, and strengthen its position in the global AI supply chain.
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