Chinese Firm Tongfu Microelectronics Begins Trial Production of HBM2 Memory, Signaling Advancements in Domestic AI Chip Manufacturing

Chinese company announces trial production of HBM2, while HBM3E is here, and HBM4 is close

Chinese memory manufacturer Tongfu has announced it has started trial production of its HBM2 process, and could have the memory chips inside of Huawei AI GPUs in the near future. In a new report from Nikkei, we're learning that Tongfu Microelectronics has started HBM2 trial production, which is a game-changer for the domestic industry in China. Tongfu isn't the only one kicking off HBM production, with CXMT and Wuhan Xinxin both making significant progress in DRAM and HBM memory over the last few months. AMD is a partner of Tongfu and a shareholder, making it famous in the industry, and you wouldn't know it... but Tongfu Microelectronics is the world's third-largest semiconductor packaging and test service provider, but the adventures into HBM memory is new for the Chinese company. Tongfu is reportedly a supplier of Huawei and its AI chips, but we don't know if we'll see Tongfu's new HBM2 memory inside of Huawei AI chips anytime soon. HBM2 is multiple generations behind of the rest of the semiconductor industry, with HBM2E, HBM3, and HBM3E already on the market and powering AI chips from AMD and NVIDIA. Meanwhile, HBM4 is around the corner and will make an appearance inside of NVIDIA's next-gen Rubin R100 AI GPU which we should get a glance at in a couple of months at NVIDIA's upcoming GPU Technology Conference (GTC) in March 2025.

Chinese Firm Tongfu Announces Trial Production Of HBM2 Process; Expected To Be Featured In Huawei's AI Chips

Chinese memory manufacturers have started to gain traction in the HBM segment, as another domestic firm announced trial production of the HBM2 process. Well, China is competing with others in the AI race with full force, as the nation has now prioritized the development of the technology, seeing it as a matter of national security. Since the Biden administration imposed sanctions on China, we have seen several domestic manufacturers emerge with their own AI solutions, notably Huawei, showing that the geopolitical situation hasn't held the nation back. In a report by Nikkei, it was revealed that the Chinese company Tongfu Microelectronics has initiated HBM2 trial production, signaling a massive breakthrough for the domestic industry. It is important to note that Tongfu isn't the only firm to have started HBM production, as it is now followed by CXMT and Wuhan Xinxin, both of which are said to have made significant strides in the DRAM and HBM industries over the past few months. While you have heard of Tongfu Microelectronics for the first time, the firm is famous in the markets since it is a partner of AMD, and Team Red is a company shareholder. Apart from this, the firm is the world's third-largest semiconductor packaging and test service provider, but the HBM venture is something new for them. It is highly likely that they are utilizing memory and semiconductor essentials from a third-party source, and then assembling the HBM2 die with their own expertise. Interestingly, Tongfu is said to be a supplier of Huawei's AI processors, although we are unaware whether their HBM has seen formal integration. While HBM2 is almost two generations behind what the global leaders are focusing on, i.e., HBM4, it is undoubtedly a huge development for China, given that, despite the influence of sanctions, domestic development is evolving rapidly. So, it is only a matter of time before we see China competing with the global industry standards, and the recent DeepSeek AI fiasco is an excellent example.