China Chip Makers Raise Prices on AI Demand as US Tightens Scrutiny

US export controls on advanced semiconductors have coincided with rising revenue at Chinese firms supplying AI hardware to domestic buyers. Huawei is projected to reach roughly $12 billion in chip revenue for 2026, up from $7.5 billion the prior year, after Beijing directed state agencies to purchase its products and provided grants exceeding $1 billion. The same period has seen CXMT and similar memory-chip producers increase prices amid surging demand from Huawei and other AI developers.

The Commerce Department has justified the restrictions as necessary to limit China’s access to technology usable in military systems and weapons of mass destruction. Lawmakers and analysts continue to debate whether the measures have slowed China’s progress in leading-edge chips or instead accelerated its push for self-reliance. Nvidia CEO Jensen Huang has described Huawei as the most formidable technology company in China.

Some production has shifted to facilities in Taiwan through indirect channels, according to Rep. John Moolenaar. The United States still accounts for approximately 75 percent of global AI computing power. Unverified claims that specific memory-chip price increases directly result from Huawei contracts have not been corroborated by multiple independent sources.