According to a Reuters report, Nvidia is set to launch new lower – priced AI chips for China and start mass production as early as June 2025. Here are the details:
Chip Specifications and Price: The new AI chips will be part of Nvidia’s latest – generation Blackwell – architecture AI processors. They are based on Nvidia’s RTX Pro 6000 D, a server – class graphics processor. The chips will use conventional GDDR7 memory instead of more advanced high – bandwidth memory and will not use Taiwan Semiconductor Manufacturing Co’s advanced chip – on – wafer – on – substrate (CoWoS) packaging technology. These factors result in weaker specifications and simpler manufacturing requirements, with a price range of $6,500 to $8,000, significantly lower than the $10,000 – $12,000 price of the recently restricted H20 model.
Reasons for the Move: China is a huge market for Nvidia, accounting for 13% of its sales in the past financial year. However, due to U.S. government export restrictions aiming to curb China’s technological development, Nvidia’s market share in China has dropped from 95% before 2022 to 50% currently. The H20 ban forced Nvidia to write off $5.5 billion in inventory and forgo $15 billion in sales. Therefore, Nvidia is developing cheaper chips to meet U.S. export control limits while continuing to serve the Chinese market.
Future Plans: In addition to the chip set to be produced in June, Nvidia is also developing another Blackwell – architecture chip for China, which is scheduled to begin production in September.
An Nvidia spokesperson said the company is still evaluating its “limited” options. Until a new product design is finalized and approved by the U.S. government, Nvidia is effectively locked out of China’s $50 – billion data center market.
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