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Chinese chip prices soared

Shafaqna English– Three people familiar with the matter have revealed that Chinese AI chipmakers, including major players like Huawei Technologies and Cambricon, have raised prices sharply for both their existing and next-generation AI processors.

This increase is largely attributed to the skyrocketing costs of high-bandwidth memory, which is essential for AI chip performance. The price hikes are complicating China’s efforts to build domestic alternatives to Nvidia’s chips, as higher production costs could make it harder for Chinese companies to compete on price and scale in the global AI chip market.

According to two sources, Huawei has increased the listed price of its Ascend 950DT accelerator card—which combines an AI processor with memory and other components—to above 250,000 yuan, equivalent to about $37,255.

This price hike is indicative of the broader trend of rising costs in China’s AI chip sector, largely driven by expensive high-bandwidth memory. The new price point underscores the financial strain on both manufacturers and buyers, and signals that the cost of building domestic AI hardware alternatives is increasing significantly.

Source: Reuters

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