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Nvidia to launch affordable AI chip for China amid US export limits

Nvidia is preparing to introduce a more affordable artificial intelligence chip for the Chinese market, which could enter mass production as early as June, according to a Reuters report quoting sources. This new chip will belong to Nvidia's latest Blackwell-series AI processors. The report said it would be priced between $6,500 and $8,000 — significantly less than the now-restricted H20 model, which cost around $10,000 to $12,000. The lower price is due to its reduced specifications and simpler manufacturing needs. Based on Nvidia's RTX Pro 6000D, a server-grade GPU, it will use standard GDDR7 memory instead of the more advanced high-bandwidth memory. Additionally, it will not feature Taiwan Semiconductor Manufacturing Co's advanced CoWoS (Chip-on-Wafer-on-Substrate) packaging, the report added. 'Until we settle on a new product design and receive approval from the US government, we are effectively foreclosed from China's $50 billion data center market,' said an Nvidia spokesperson. So far, the TSMC has not issued any statement on this. Struggles in Chinese market China remains a key market for Nvidia, making up 13 per cent of its revenue in the past financial year. This marks the third time Nvidia has had to redesign a GPU specifically for China due to US export controls aimed at limiting Chinese technological progress. After the US banned the H20 chip in April, Nvidia reportedly considered launching a lower-performance version of it for China, but that plan was eventually scrapped. CEO Jensen Huang recently said the company's older Hopper architecture, used in the H20, can no longer be adapted under current US rules. New models in development The final name of the upcoming chip is not yet known. Chinese brokerage GF Securities predicted it may be called the 6000D or B40, although it did not provide pricing or cite sources. Nvidia is reportedly working on another Blackwell-based chip for China, expected to enter production as early as September. The specifications of that model remain unconfirmed. Losing market share to Huawei Nvidia's share in China's GPU market has fallen drastically — from 95 per cent before 2022 to about 50 per cent now — due to ongoing export restrictions, Huang told reporters in Taipei. He added that Huawei, which makes the Ascend 910B chip, has become a major competitor. Huang also cautioned that continued restrictions would push more Chinese customers toward Huawei's products. The H20 ban forced Nvidia to write off $5.5 billion in inventory. On the Stratechery podcast, Huang revealed the company also had to forgo $15 billion in potential sales. The latest export rules introduced limits on GPU memory bandwidth, a key factor in processing large AI workloads. Investment bank Jefferies estimates the cap to be around 1.7 to 1.8 terabytes per second — far below the H20's 4 TBs. GF Securities forecasts the upcoming GPU will match this limit using GDDR7 memory. Nvidia CEO praises Trump on tech policy During a visit to Sweden on Saturday, Jensen Huang applauded US President Donald Trump's support for American tech firms. Nvidia announced a partnership with Swedish companies, including Ericsson and AstraZeneca, to build AI infrastructure using its latest data centre platform. This move follows similar collaborations in Saudi Arabia and the UAE after the Trump administration reversed an earlier policy from President Joe Biden that restricted AI chip exports. Huang said, 'American technology companies were very successful in China four years ago, we have lost about 50 per cent of the market share and competitors have grown.' He continued, 'The President would like American technology to win with Nvidia and American companies to sell chips all over the world and to generate revenues, tax revenues, invest and build in the United States.' The Trump administration has implemented broad tariffs, claiming they will promote economic growth, boost US manufacturing, and increase tax revenues. However, some businesses and economists fear these policies could raise costs, disrupt supply chains, and damage confidence, potentially triggering a recession. However, Huang expressed strong support for policies aimed at rebuilding US industry. 'Manufacturing in the United States, securing our supply chain, having real resilience, redundancy and diversity in our manufacturing supply chain — all of that is excellent,' he said.