Huawei tells customers to source their own AI chip memory

Huawei is telling customers to find the high-performance memory for its AI chips themselves. Smugglers exploit a US export-rule loophole by bundling HBM (high-bandwidth memory) with low-end processors, shipping via Hong Kong and separating the parts on site. Smuggled HBM3E prices have reached about $4,000 per unit, up sharply in a year.

Why it matters: Memory, not compute, is the binding constraint on China's AI chips, and export controls that check only processor specs are leaking. Expect pressure on customs rules covering memory. Huawei offloading procurement to the grey market shows how strained its supply chain is.