Wire · regulatory
Smugglers are reportedly soldering top-tier HBM onto deliberately useless processors to ...
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Fusion42 · 4 November 2026 · Fusion42 review
Smugglers are exploiting a US export regulation loophole by soldering high-bandwidth memory (HBM) onto intentionally low-performance processors to export the memory to China without a license. Workshops in China then remove the memory stacks for resale, primarily to Huawei, circumventing US controls designed to restrict access to advanced memory technology.
This Wire brief sits within Fusion42's coverage of Semiconductors, and 2 sources have reported it between 3 Nov 2026 and 4 Nov 2026.
◆ ◆ The Wire takeaway
You face a new compliance risk as smugglers bypass US chip export controls by pairing valuable memory with useless processors. Adjust your supply chain checks to spot these decoy chips or lose market edge to illicit imports.
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2 sources · first reported 3 Nov 2026 · latest 4 Nov 2026
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