#HBMShortageBoostsAIChipPrices HBM Shortage Boosts AI Chip Prices
A global shortage of high-bandwidth memory (HBM) is pushing up prices for AI processors, particularly in China, where chipmakers are racing to develop alternatives to Nvidia. HBM is a critical component of modern AI accelerators because it enables processors to move huge amounts of data at very high speeds.
Huawei has reportedly raised the indicated price of its upcoming Ascend 950DT accelerator card to more than 250,000 yuan ($37,255), representing an increase of around 20% to 50% from quotes made two months earlier. Cambricon has also increased prices for its next-generation 690 chip by approximately 20% to 30%. Smaller Chinese chipmakers, including MetaX and Iluvatar CoreX, have made similar adjustments.
The shortage is particularly challenging because advanced HBM supplies are concentrated among SK Hynix, Samsung Electronics and Micron. Export restrictions have also made sourcing advanced HBM more difficult for Chinese companies, forcing some buyers toward expensive alternative channels.
With AI infrastructure demand continuing to surge, constrained HBM supply could keep AI accelerator prices elevated, increasing costs for data centers and slowing efforts to expand domestic AI computing capacity. $GT