Global / Semiconductors

Chinese AI chipmakers raise prices as high-bandwidth memory shortage bites

Supply constraints on specialised memory are inflating costs for domestic accelerators, narrowing China's cost advantage over Western alternatives.

Chinese AI chipmakers including Huawei have raised prices on accelerator cards as a shortage of high-bandwidth memory constrains supply. Huawei's Ascend 950DT has been priced above 250,000 yuan ($37,255), reflecting the tighter market.

Published · significance 53 of 100 (medium) · 2 independent sources

What happened

Chinese AI chipmakers have raised prices on accelerator cards amid a shortage of high-bandwidth memory. Huawei has lifted the indicative price of its Ascend 950DT accelerator card, which integrates an AI processor with memory and other components, to above 250,000 yuan ($37,255).

Why it matters

High-bandwidth memory is a critical bottleneck for AI accelerators worldwide. Price increases for Chinese chips erode the cost advantage that domestic makers have relied on to compete with Nvidia and other Western suppliers, potentially slowing adoption of Chinese accelerators in price-sensitive markets.

What changes

Chinese accelerator cards become less economically attractive relative to Western alternatives, particularly in regions or applications where cost is a primary driver of procurement decisions.

Sources

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