Nvidia to Launch Lower-Priced AI Chip in China Amid Export Curbs

Nvidia (NASDAQ:NVDA) plans to release a new artificial intelligence chip in China by June, offering a lower-cost alternative to its previously restricted H20 chip, according to a Reuters report. The upcoming GPU will be part of Nvidia’s Blackwell series and priced between $6,500 and $8,000—cheaper than the $10,000–$12,000 range of the H20.

Designed to comply with updated U.S. export restrictions, the new chip will feature scaled-down specifications and simpler production methods. It will use GDDR7 memory instead of high-bandwidth memory (HBM), which is now prohibited in AI chip exports to China under the latest U.S. controls. Additionally, the chip won’t rely on Taiwan Semiconductor Manufacturing Co.’s (TSMC) chip-on-wafer-on-substrate packaging.

This move comes as Nvidia aims to maintain its presence in the Chinese market amid tightening export regulations. CEO Jensen Huang emphasized that China remains a critical growth opportunity, potentially reaching $50 billion in sales. However, Nvidia’s market share in China has dropped significantly—from 95% before 2022 to around 50% today.

The U.S. initially blocked Nvidia’s H20 chip, developed specifically for China, under Biden-era rules. Recent restrictions under the Trump administration have further limited AI chip exports, particularly those using HBM technology.

Nvidia now faces increasing competition from domestic players like Huawei, whose Ascend chips have gained traction amid China’s push for tech self-sufficiency. Huang has criticized the export controls, calling them a “failure” that has only accelerated local chip innovation.

As Nvidia adapts to geopolitical and regulatory shifts, its new China-focused chip underscores the company’s efforts to sustain relevance in a rapidly evolving global AI landscape.