Chinese AI Chipmakers Raise Prices 50% on HBM Shortages

Chinese artificial intelligence chipmakers, including Huawei Technologies and Cambricon Technologies, are raising prices on current and upcoming processors by 20% to 50% as a severe global shortage of high-bandwidth memory collides with U.S. export controls. The price hikes underscore mounting supply chain constraints for domestic alternatives to Nvidia chips as demand from Chinese technology giants accelerates.

The Ascend 950DT and Next-Generation Pricing

Huawei has lifted the indicated price of its upcoming Ascend 950DT accelerator card to above 250,000 yuan, or approximately $37,255, representing a 20% to 50% increase from quotes issued just two months prior, according to a Reuters report. The company has stated that the Ascend 950DT will be commercially available in the fourth quarter of 2026.

Meanwhile, Beijing-based Cambricon has repriced its next-generation processor, tentatively called the 690, at 20% to 30% above levels indicated two months ago, according to the Reuters report.

Older Generation Hardware Also Climbs

The price increases extend to established processor lines as domestic chipmakers struggle to secure sufficient memory components. Prices for Huawei's earlier-generation Ascend 950PR have climbed about 30%, rising from roughly 60,000 yuan to over 80,000 yuan, while the older Ascend 910C board has advanced from about 90,000 yuan to over 110,000 yuan, according to the Reuters report.

Supply Shifts Among Domestic Competitors

Beyond price adjustments, the hardware squeeze is altering delivery schedules and shipment volumes across the domestic semiconductor ecosystem. Rival designer Iluvatar CoreX has doubled its shipments of graphics processing units to ByteDance to 100,000 units this year, a surge that required the company to divert processors originally earmarked for internal use to satisfy external delivery commitments, according to the Reuters report.

What Is High-Bandwidth Memory and Why Is It Scarce?

High-bandwidth memory is a specialized, vertically stacked computer memory architecture that connects directly to high-performance processors using microscopic vertical interconnects called through-silicon vias. This design allows for massive data transfer rates while consuming less physical space and power than traditional memory formats like GDDR or DDR, making it a critical component for high-end AI training accelerators.

The global high-bandwidth memory market is dominated by SK Hynix, Samsung Electronics, and Micron Technology, operating under tight production capacities and surging global demand from Western AI hardware leaders. For Chinese chipmakers cut off from advanced foreign memory suppliers by tightening U.S. export restrictions, sourcing these critical semiconductor components relies heavily on domestic workarounds and constrained local supply chains.