China HBM Market (2026-2031) - Rising AI and High-Performance Computing Demand Drives Growth

China HBM Market (2026-2031) - Rising AI and High-Performance Computing Demand Drives Growth Dublin, Sept. 17, 2026 (GLOBE NEWSWIRE) -- "China HBM - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

China HBM Market to Reach USD 943.57 Million by 2031 as AI Infrastructure Demand Accelerates

The China high-bandwidth memory (HBM) market is projected to grow from USD 240.44 million in 2025 to USD 301.88 million in 2026 before reaching USD 943.57 million by 2031. The market is expected to register a compound annual growth rate of 25.60% from 2026 to 2031, supported by expanding artificial intelligence infrastructure, rising memory requirements for advanced processors, domestic semiconductor investment, and increasing demand for secure local supply chains.

Export Controls Accelerate Domestic HBM Development

Export controls continue to reshape procurement and investment strategies across the China HBM market. Restrictions introduced by the U.S. Bureau of Industry and Security in December 2024 expanded controls covering HBM, DRAM, and advanced semiconductor packaging equipment. These measures narrowed Chinese buyers' access to HBM3 and later-generation products, prompting AI chip developers and data center operators to rely on previously secured inventories while accelerating domestic supplier qualification.

As a result, procurement decisions are increasingly based on supply security rather than cost and performance alone. Delays in HBM availability can restrict shipments of domestic AI accelerators and slow the deployment of computing clusters. Local manufacturing capacity has therefore gained strategic importance, even as suppliers work toward improved production economics and commercial-scale output. The June 2026 approval of ChangXin Memory Technologies' initial public offering further highlighted the flow of capital into domestic capacity expansion and HBM commercialization.

AI Servers Drive Higher Memory Capacity and Bandwidth Requirements

Demand for China's HBM market is rising as each generation of AI accelerators requires greater memory capacity and bandwidth. Huawei's Ascend 950PR, launched in March 2026, incorporated 112 GB of HBM and delivered 1.6 TB/s of memory bandwidth. The Ascend 950DT roadmap points to a further increase to 144 GB of HBM and bandwidth of 4 TB/s for more demanding AI training and inference workloads.

These advances are increasing pressure on domestic HBM availability, semiconductor packaging capacity, thermal management, and product validation. As Chinese accelerator developers pursue higher performance levels, HBM is becoming increasingly important to AI server deployments and high-performance computing infrastructure. Growth is also extending beyond memory die production to advanced packaging, testing, bonding, and system integration.

Manufacturing Yields Remain a Key Market Constraint

Production yields continue to present a significant challenge, particularly for HBM products with higher stack counts and tighter bonding requirements. Manufacturing complexity increases across through-silicon via formation, bonding consistency, thermal control, test coverage, and final-package reliability. Cumulative yield losses can raise costs and delay the transition from engineering samples to volume production.

Domestic suppliers will need to establish commercially viable yields across pilot and early mass-production runs to support sustained market expansion. Export restrictions may lengthen this process by limiting access to selected foreign manufacturing tools, technical support, and yield-optimization expertise. Despite these obstacles, investment in domestic semiconductor equipment and advanced packaging capacity is expected to support continued progress.

Additional factors shaping the China HBM market include:

Legacy HBM Leads Current Sales as Newer Generations Gain Momentum

HBM2E and earlier generations represented 44.17% of the China HBM market in 2025. This share reflected the continued use of legacy inventory and restricted access to newer imported products rather than a long-term preference for older technology. Previously secured supplies provided buyers with a temporary cushion as domestic alternatives progressed through qualification.

HBM3 and HBM3E are expected to play an important transitional role by supporting current AI deployment requirements while manufacturers prepare more advanced products. HBM4 is forecast to expand at a CAGR of 26.57% through 2031, making it a key indicator of future demand. Although the segment remains at an early commercial stage, its projected growth demonstrates that Chinese buyers are planning for the performance requirements of next-generation AI accelerators. HBM4E and later generations may also gain momentum as manufacturing, packaging, and yield barriers ease.

Advanced Technology Nodes Capture the Largest Market Share

Advanced nodes below 1Z accounted for 49.63% of the China HBM market in 2025, confirming that demand is increasingly concentrated in high-density memory configurations. These nodes are essential for accelerators requiring greater capacity, bandwidth, and energy efficiency in AI training and inference environments.

Meanwhile, 1Z and 1Y nodes retain a role in applications where availability, compatibility, and cost remain more important than maximum performance. Older 1X and above legacy nodes continue to support less demanding workloads but are expected to lose relative market share as AI-centered deployments expand.

The transition toward advanced nodes remains closely linked to access to semiconductor manufacturing equipment, lithography capabilities, design tools, and packaging technologies. Demand for leading nodes may continue to outpace domestic supply as customer performance requirements advance faster than manufacturing readiness. This imbalance is expected to direct further investment toward advanced memory fabrication, equipment localization, packaging capacity, and supply-chain resilience throughout the forecast period.

Key Topics Covered:

1 INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET LANDSCAPE

4.1 Market Overview

4.2 Market Drivers

4.2.1 Accelerating AI Server and GPU Memory Density Requirements

4.2.2 China-Specific AI Compute Localization Programs

4.2.3 Rapid Expansion of Domestic Advanced Packaging Capacity

4.2.4 Export-Control-Induced Import Substitution

4.2.5 Hybrid Bonding and TSV Ecosystem Catch-Up

4.2.6 Hyperscale Cloud Procurement of Domestic Memory

4.3 Market Restraints

4.3.1 Limited Access to Leading-Edge EDA and Process Tools

4.3.2 Yield Losses in High-Stack HBM Manufacturing

4.3.3 Tight Qualification Cycles for AI Accelerator Customers

4.3.4 Dependence on Imported Advanced Materials and Substrates

4.4 Supply Chain Analysis

4.5 Regulatory Landscape

4.6 Technological Outlook

4.7 Porter's Five Forces Analysis

4.7.1 Threat Of New Entrants

4.7.2 Bargaining Power Of Suppliers

4.7.3 Bargaining Power Of Buyers

4.7.4 Threat Of Substitutes

4.7.5 Intensity of Competitive Rivalry

5 MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By HBM Type

5.1.1 HBM2E and Earlier Generations

5.1.2 HBM3

5.1.3 HBM3E

5.1.4 HBM4

5.1.5 HBM4E

5.2 By Technology Node

5.2.1 1X and above Legacy Nodes

5.2.2 1Y Node

5.2.3 1Z Node

5.2.4 Advanced Nodes below 1Z

5.3 By End Use Industry

5.3.1 Cloud Service Providers and Hyperscalers

5.3.2 Internet Platforms and AI Model Developers

5.3.3 Government, Defense, Research, and Academic Institutions

5.3.4 Enterprise Data Centers

5.3.5 Telecommunications Operators and Network Equipment Providers

5.3.6 Other End Use Industries

5.4 By Application

5.4.1 AI Model Training

5.4.2 AI Model Inference

5.4.3 HPC and Scientific Computing

5.4.4 Professional Graphics, Rendering, and Visualization

5.4.5 Network and Telecom Processing

5.4.6 Other Applications

5.5 By Packaging Type

5.5.1 2.5D Interposer-Based Packaging

5.5.2 3D Stacking

5.5.3 Fan-Out Advanced Packaging

6 COMPETITIVE LANDSCAPE

6.1 Market Concentration

6.2 Strategic Moves

6.3 Market Share Analysis

6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)

6.4.1 ChangXin Memory Technologies, Inc.

6.4.2 Samsung Electronics Co., Ltd.

6.4.3 SK hynix Inc.

6.4.4 Micron Technology, Inc.

6.4.5 Tongfu Microelectronics Co., Ltd.

6.4.6 Jiangsu Changjiang Electronics Technology Co., Ltd.

6.4.7 NAURA Technology Group Co., Ltd.

6.4.8 Advanced Micro-Fabrication Equipment Inc.

6.4.9 Piotech Inc.

6.4.10 ACM Research, Inc.

6.4.11 Shenzhen Kingsemi Co., Ltd.

6.4.12 U-Precision Technology Co., Ltd.

6.4.13 Huawei Technologies Co., Ltd.

6.4.14 Semiconductor Manufacturing International Corporation

6.4.15 Inspur Electronic Information Industry Co., Ltd.

6.4.16 Alibaba Cloud Computing Ltd.

6.4.17 Tencent Holdings Limited

6.4.18 Sugon Information Industry Co., Ltd.

7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-Space And Unmet-Need Assessment

For more information about this report visit https://www.researchandmarkets.com/r/gak5ly

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