Chinese AI chipmakers like Huawei Technologies and Cambricon have significantly raised prices for their AI processors, citing rising costs of high-bandwidth memory (HBM) as a key factor. Huawei has increased the price of its Ascend 950DT accelerator card to over 250,000 yuan (approximately $37,255), marking a 20% to 50% rise from earlier prices within just two months. The Ascend 950DT is expected to launch in the fourth quarter of 2026.
Cambricon has also increased the price of its next-gen chip, the 690, by 20% to 30%, and smaller companies like MetaX and Iluvatar CoreX have followed suit with similar price hikes. The ongoing global shortage of HBM is affecting China’s AI industry, as the government encourages companies to develop local alternatives to Nvidia products. HBM is vital for AI computing, providing quick access to large data volumes, but its supply is largely controlled by companies like SK Hynix, Samsung Electronics, and Micron Technology.
After the U.S. placed restrictions on HBM exports to China in December 2024, Chinese manufacturers have turned to grey markets for supplies, driving up costs significantly for them compared to global prices. Due to the important role of memory in AI accelerators, these increased costs are directly impacting the prices of finished products.
Additionally, older Huawei chips have also seen price increases, with the Ascend 950PR now exceeding 80,000 yuan, up from around 60,000 yuan earlier this year. Such price hikes are raising the costs of building AI computing capacity and highlight the challenges faced by Chinese chipmakers in a market that had previously offered them significant opportunities due to restrictions on Nvidia’s advanced chips.
With information from Reuters
