Nvidia Unveils New AI Chip for China to Bypass U.S. Export Controls

 Nvidia (NASDAQ: NVDA) is preparing to roll out a new artificial intelligence (AI) chip for the Chinese market, priced below its previously restricted H20 model, according to a report from Reuters. Production is expected to begin as early as June.

The upcoming chip, which will be part of Nvidia’s current-generation Blackwell series of GPUs (graphics processing units), will reportedly cost between $6,500 and $8,000—a notable decrease from the $10,000 to $12,000 price range of the H20 chip. Reuters, citing two sources familiar with the matter, said the new chip is designed with less advanced specifications to comply with recent U.S. export restrictions.

Unlike its high-performance counterparts, the chip will utilize standard GDDR7 memory rather than high-bandwidth memory (HBM), which is now restricted under U.S. regulations. It will also forgo TSMC’s chip-on-wafer-on-substrate packaging technology, another key component found in Nvidia’s top-tier AI processors.

This move comes as Nvidia navigates tightening U.S. export controls that have sharply limited its ability to sell advanced semiconductors to China. The Biden administration initially imposed curbs on chips like the H20, which Nvidia had specifically developed for the Chinese market. The Trump administration recently expanded those restrictions, further limiting the export of AI chips featuring HBM to China.

Despite these hurdles, Nvidia CEO Jensen Huang maintains that China is still a critical market, predicting it could become a $50 billion opportunity in the years ahead. Huang has publicly criticized the export restrictions, calling them a “failure” and arguing they have only spurred domestic Chinese chipmakers to accelerate development of their own AI technologies.

Since 2022, Nvidia’s share of the Chinese AI chip market has dropped significantly—from 95% to 50%—as local competitors, particularly Huawei, continue to improve their AI chip offerings, such as the Ascend series.

The new, lower-spec Blackwell chip is Nvidia’s latest attempt to retain market relevance in China, balancing compliance with U.S. policy and the ongoing demand for AI processing power in the world’s second-largest economy.

 Nvidia (NASDAQ: NVDA) is preparing to roll out a new artificial intelligence (AI) chip for the Chinese market, priced below its previously restricted H20 model, according to a report from Reuters. Production is expected to begin as early as June.

The upcoming chip, which will be part of Nvidia’s current-generation Blackwell series of GPUs (graphics processing units), will reportedly cost between $6,500 and $8,000—a notable decrease from the $10,000 to $12,000 price range of the H20 chip. Reuters, citing two sources familiar with the matter, said the new chip is designed with less advanced specifications to comply with recent U.S. export restrictions.

Unlike its high-performance counterparts, the chip will utilize standard GDDR7 memory rather than high-bandwidth memory (HBM), which is now restricted under U.S. regulations. It will also forgo TSMC’s chip-on-wafer-on-substrate packaging technology, another key component found in Nvidia’s top-tier AI processors.

This move comes as Nvidia navigates tightening U.S. export controls that have sharply limited its ability to sell advanced semiconductors to China. The Biden administration initially imposed curbs on chips like the H20, which Nvidia had specifically developed for the Chinese market. The Trump administration recently expanded those restrictions, further limiting the export of AI chips featuring HBM to China.

Despite these hurdles, Nvidia CEO Jensen Huang maintains that China is still a critical market, predicting it could become a $50 billion opportunity in the years ahead. Huang has publicly criticized the export restrictions, calling them a “failure” and arguing they have only spurred domestic Chinese chipmakers to accelerate development of their own AI technologies.

Since 2022, Nvidia’s share of the Chinese AI chip market has dropped significantly—from 95% to 50%—as local competitors, particularly Huawei, continue to improve their AI chip offerings, such as the Ascend series.

The new, lower-spec Blackwell chip is Nvidia’s latest attempt to retain market relevance in China, balancing compliance with U.S. policy and the ongoing demand for AI processing power in the world’s second-largest economy.