Tongfu of China Begins Trial Production of HBM2 Process, Anticipated in Huawei’s AI Chips

Chinese memory manufacturers are making significant strides in the High Bandwidth Memory (HBM) sector, with another domestic company stepping into the spotlight by announcing trial production of the HBM2 process.

China is pushing tirelessly to stay competitive in the AI arena, recognizing this technological advancement as crucial to national security. Despite the challenges posed by the Biden administration’s sanctions, Chinese manufacturers have been emerging with innovative AI solutions. For instance, Huawei has shown significant progress, underscoring how the geopolitical pressures haven’t slowed down the country’s tech advancements. In a recent report from Nikkei, it was revealed that Tongfu Microelectronics, a Chinese firm, has embarked on trial production of HBM2, marking a significant achievement for the local tech scene.

But Tongfu isn’t alone in this endeavor. Other players like CXMT and Wuhan Xinxin have also made notable advancements in the DRAM and HBM markets in recent months. While the name Tongfu Microelectronics might be new to some, those in the industry know it well due to its collaborations with AMD, which even holds a stake in the company.

In addition to its new ventures, Tongfu Microelectronics is recognized as the world’s third-largest provider of semiconductor packaging and testing services. This move into the HBM sector suggests they may be sourcing key components externally and leveraging their own expertise to assemble the HBM2 dies.

There’s also buzz about Tongfu being a supplier for Huawei’s AI processors, though it’s not yet confirmed if their HBM products have been fully integrated into these systems. Although HBM2 is technically a couple of generations behind the latest global standard of HBM4, the progress represents a significant leap for China. The swift pace of development, despite sanctions, suggests that China is rapidly closing the gap with global leaders. The recent DeepSeek AI incident vividly illustrates how the country is making headway in aligning with international industry benchmarks.