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.
The U.S. government's decision in April 2025 to impose stricter export controls on advanced semiconductors has delivered a significant blow to Nvidia, compelling the company to obtain licenses for sales of its H20 AI chips to China—one of its largest and most strategically important markets.
Nvidia (NASDAQ: NVDA) announced a significant move to expand its influence in AI hardware on Monday, revealing plans to sell its NVLink Fusion technology to other chipmakers, enabling faster communication between artificial intelligence (AI) chips.
Nvidia will take a $5.5 billion charge after the U.S. restricted exports of its H20 AI chip to China, citing security concerns. The move targets China's access to advanced tech, impacting Nvidia's key market amid growing global AI competition.
Nvidia CEO Jensen Huang forecasted a rapid arrival of humanoid robots in manufacturing, stating that widespread use in factory settings is likely within the next few years.
The Nvidia’s annual software developer conference this week, CEO Jensen Huang is set to defend the company’s leading position in the AI chip market amid growing competition and cost pressures on its largest customers.
U.S. Secretary of State Marco Rubio expressed strong support for Azerbaijan’s sovereignty and territorial integrity while congratulating the country on its Independence Day.
French President Emmanuel Macron is set to meet Indonesian President Prabowo Subianto in Jakarta to discuss strengthening defence cooperation and mining partnerships between the two countries.
SpaceX's latest Starship launch from Texas ended in an uncontrolled spin before completing key mission goals, highlighting fresh challenges for Elon Musk’s ambitious Mars program.
U.S. President Donald Trump's administration has moved to terminate all remaining federal contracts with Harvard University, directing agencies to review and possibly reallocate contracts worth approximately $100 million.
French police arrest 24 over kidnapping plots targeting crypto figures
AnewZ takes to the streets of Yerevan and Baku to ask a simple yet deeply complex question: How do you see peace between Armenia and Azerbaijan? In the first part of our special report, we hear the hopes, doubts, and scars still shaping people’s perspectives on both sides.
Anton Kobyakov, adviser to Russian President Vladimir Putin, claimed at the St. Petersburg International Legal Forum that the USSR’s dissolution was legally invalid and that the Soviet Union still exists under constitutional law, framing the Ukraine war as an “internal process.”
A car drove into crowds of Liverpool fans celebrating the club’s Premier League title in the city centre on Monday evening, injuring dozens including 4 children. A 53-year-old man believed to be the driver was arrested at the scene.
Kyiv faced a large-scale Russian drone and missile assault overnight, with explosions and gunfire echoing throughout the city, forcing residents to shelter in subway stations.
In a region long defined by conflict and complex history, AnewZ set out to hear the voices that matter most- those of the people.
SpaceX's latest Starship launch from Texas ended in an uncontrolled spin before completing key mission goals, highlighting fresh challenges for Elon Musk’s ambitious Mars program.
Pakistan is positioning itself as a major tech hub, with Prime Minister Shehbaz Sharif announcing a $700 million IT investment and urging global investors to capitalize on the country's digital growth.
Humanoid robots faced off in a boxing ring in Hangzhou during a robotics event showcasing artificial intelligence and engineering capabilities in competitive matches.
A Florida judge has ruled that a mother’s lawsuit can proceed against AI startup Character.ai, following the suicide of her 14-year-old son who allegedly became addicted to the company’s chatbot app.
At Computex 2025 in Taipei, standout innovations included Acer's affordable smart ring, Asus's gamer-centric split keyboard, and MSI's AMD-powered Claw A8 handheld gaming device.
U.S. Secretary of State Marco Rubio expressed strong support for Azerbaijan’s sovereignty and territorial integrity while congratulating the country on its Independence Day.
French President Emmanuel Macron is set to meet Indonesian President Prabowo Subianto in Jakarta to discuss strengthening defence cooperation and mining partnerships between the two countries.
SpaceX's latest Starship launch from Texas ended in an uncontrolled spin before completing key mission goals, highlighting fresh challenges for Elon Musk’s ambitious Mars program.
U.S. President Donald Trump's administration has moved to terminate all remaining federal contracts with Harvard University, directing agencies to review and possibly reallocate contracts worth approximately $100 million.
French police arrest 24 over kidnapping plots targeting crypto figures
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment