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.
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