It is reported that NVIDIA will launch a China-specific AI chip using the Blackwell architecture

According to media reports citing informed sources, NVIDIA (NVDA.US) will launch a new artificial intelligence chip for the Chinese market, which is expected to begin mass production as early as June this year. The informed sources stated that the chip is based on the Blackwell architecture, with a price range between $6,500 and $8,000, significantly lower than the pricing of NVIDIA's previously launched China-specific chip H20 (priced at $10,000 to $12,000). A lower price typically indicates weaker chip specifications, and the manufacturing requirements are correspondingly reduced. The informed sources mentioned that this chip will use the NVIDIA RTX Pro 6000D architecture, classified as a server-grade graphics processing unit (GPU), equipped with GDDR7 memory—rather than the more advanced high-bandwidth memory (HBM). The sources added that this chip will not utilize TSMC's (TSM.US) advanced packaging technology CoWoS. Reports indicate that this is NVIDIA's third time launching a downgraded chip for the Chinese market that complies with U.S. regulatory requirements. NVIDIA CEO Jensen Huang stated last week that under the current U.S. chip export restrictions, the company's older Hopper architecture (used in H20) can no longer be further modified. A spokesperson for NVIDIA stated that the company is still evaluating "limited" options, and "until we finalize new product designs and obtain approval from the U.S. government, we are effectively excluded from the $50 billion data center market in China." Two informed sources also revealed that NVIDIA is developing another chip based on the Blackwell architecture for the Chinese market, which may begin production as early as September. The reports pointed out that China remains an important market for NVIDIA. In the last fiscal year, sales in the Chinese market accounted for 13% of NVIDIA's total sales. However, U.S. government chip export restrictions have severely impacted NVIDIA's business in China. Jensen Huang stated earlier this month that NVIDIA's market share in China has plummeted from 95% before the U.S. chip export restrictions took effect in 2022 to the current 50%. The H20 ban has forced NVIDIA to write off $5.5 billion in inventory. Huang stated that NVIDIA has thus given up approximately $15 billion in potential sales. Additionally, Huang warned that if the U.S. continues to implement chip export restrictions, more Chinese customers will turn to chips from domestic manufacturers