Nvidia plans to roll out a lower-cost AI chip tailored for China based on its new Blackwell architecture, aiming to preserve its foothold in a shrinking but still critical market amid intensifying U.S. export restrictions.
According to sources familiar with the matter, the new graphics processing unit (GPU) will be priced between $6,500 and $8,000, significantly below the now-banned H20 model, which previously sold for $10,000 to $12,000. Mass production is expected to begin as early as June, the sources said.
The new chip is reportedly based on Nvidia’s RTX Pro 6000D and will incorporate GDDR7 memory instead of high-bandwidth memory (HBM), which is restricted under U.S. trade policy. The GPU will also forego Taiwan Semiconductor Manufacturing Co’s advanced Chip-on-Wafer-on-Substrate (CoWoS) packaging — a move that simplifies production and avoids violating U.S. rules.
Navigating Export Curbs
Nvidia has been forced to repeatedly redesign its chips for China following successive rounds of U.S. export controls targeting high-performance semiconductors. The H20 chip, part of Nvidia's Hopper architecture, was effectively banned in April, prompting the company to explore new configurations that stay within the latest U.S. limits — especially on memory bandwidth, now capped at 1.7–1.8 terabytes per second.
The new GPU is expected to operate just under the limit, offering around 1.7 TB/s with GDDR7 memory, according to estimates from GF Securities, a Chinese brokerage. While the final product name has not been confirmed, GF Securities suggested it could be called the 6000D or B40.
A second Blackwell chip designed for China is also reportedly in development, with production targeted for September, although specifications remain undisclosed.
Market Share and Strategic Risk
China previously accounted for 13% of Nvidia’s total revenue, making it a vital market despite geopolitical headwinds. Nvidia's market share in China has dropped sharply, from 95% in 2022 to 50% today, according to CEO Jensen Huang, who warned that ongoing restrictions risk pushing Chinese customers toward local alternatives like Huawei’s Ascend 910B chip.
The U.S. government’s aggressive curbs have already inflicted substantial financial damage on Nvidia. The company was forced to write off $5.5 billion in inventory and walk away from $15 billion in potential sales, Huang said during a recent appearance on the Stratechery podcast.
“We are effectively foreclosed from China’s $50 billion data center market,” an Nvidia spokesperson said. The company is still awaiting U.S. government approval for any new product design.
Strategic Trade-Offs
By stripping down its newest chip — using less advanced memory and avoiding restricted packaging techniques — Nvidia appears to be betting on a strategy of compliance through simplification, targeting just enough performance to meet export criteria while staying competitive with domestic Chinese offerings.
Still, analysts note that Huawei and other Chinese chipmakers are rapidly advancing, and continued U.S. restrictions may accelerate a broader technological decoupling in the AI hardware space.
As tensions persist and U.S. policy shows no signs of reversal, Nvidia’s lower-spec Blackwell GPU may represent one of its last viable pathways into China’s lucrative AI market — at least for now.
Iranian President Masoud Pezeshkian has called for greater economic cooperation among Muslim countries, saying their combined economic weight remai...
A restaurant payment with a Visa card in Damascus has become a symbol of Syria’s reconnection with the global financial system....
Iran’s President Masoud Pezeshkian has said that Tehran is ready to establish joint security arrangements...
Oil prices fell after the U.S. expanded economic sanctions on Iran, as Tehran vowed to retaliate and warned it had tools to respond, raising concerns over potential disruption to regional oil supplies.
Rescuers in Nepal used helicopters on Thursday to scour for hundreds still missing after a wall of mud and rock collapsed into a river on the Himalayan border with China's Tibet, sending catastrophic floods through towns and valleys, killing 162 people.
Secretary of State Marco Rubio told allied foreign ministers Washington will focus on sanctions and other pressure on Iran “for the time being”, Axios reports. Meanwhile, Iran and Oman have resumed talks on a temporary shipping route through the Strait of Hormuz.
Kyiv has recently received a small number of U.S.-made Patriot interceptors capable of downing Russian ballistic missiles, Ukrainian President Volodymyr Zelenskyy has said. It comes as Britain and France pledged stronger military support for Ukraine.
Iranian President Masoud Pezeshkian has called for greater economic cooperation among Muslim countries, saying their combined economic weight remains disproportionately small compared with their population, strategic location and resources.
A humanoid robot developed by Chinese smartphone maker Honor has run 100 metres in 9.32 seconds, beating Usain Bolt's men's world record of 9.58 seconds, China's state broadcaster reported on Saturday.
An artificial intelligence agent running an experimental store in San Francisco has recommended dismissing a human employee after the worker repeatedly arrived late for shifts.
Nvidia is teaming up with some of the biggest names in global finance in a move that underscores how artificial intelligence is rapidly becoming one of the world's most sought-after investment themes.
Parts of Europe and the Arctic will briefly fall into darkness on Wednesday, 12 August, as the Moon passes between Earth and the Sun in a total solar eclipse.
Meta said one of its AI models hacked another company's systems during cybersecurity testing, intensifying concerns about how developers can contain increasingly capable AI systems following similar incidents involving Anthropic and OpenAI.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment