Nvidia's New China-Specific GPU Strategy: Cheaper Blackwell Chip on the Horizon Amidst U.S. Curbs?

Key Points

Yingweida (英伟达) – Nvidia is reportedly preparing a new China-specific AI chip based on its Blackwell architecture for mass production starting in June.
The new chip is expected to be significantly cheaper than the restricted H20 model, priced between $6,500 and $8,000 USD, compared to the H20’s $10,000 to $12,000 USD.
To comply with U.S. export restrictions, the chip will likely use GDDR7 memory and forgo advanced Taijidian (台积电) – TSMC’s CoWoS packaging, designed to keep memory bandwidth within around 1.7 TB/s.
China remains a major market for Yingweida (英伟达) – Nvidia, accounting for 13% of its sales last fiscal year, despite a significant drop in market share from over 95% pre-2022 to a current 50%.
This marks Yingweida (英伟达) – Nvidia’s third attempt to develop a compliant China-specific GPU amidst ongoing U.S. export controls.

Word on the street is that Yingweida (英伟达) – Nvidia is gearing up to launch a brand new AI chipset tailored for the Chinese market, and it looks like Nvidia’s new China-specific GPU could be a game-changer, especially with a price tag reportedly much lower than the recently restricted H20 model.

Mass production? Folks are saying it could kick off as early as June. Let’s dive in.

Nvidia’s Next Big Play: A Fresh GPU for China?

Sources close to the matter are hinting that this isn’t just any GPU.

It’s tipped to be part of Yingweida (英伟达) – Nvidia’s cutting-edge Blackwell architecture AI processors.

This development comes as the tech giant navigates an increasingly complex geopolitical landscape, particularly U.S. government restrictions on tech exports to China.

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Key Specs of New China-Specific Chip vs. H20
Feature	New Chip (Rumored)	H20 (Restricted)
Architecture	Blackwell (Rumored)	Hopper
Expected Price (USD)	$6,500 – $8,000	$10,000 – $12,000
Memory Type	GDDR7 (Likely)	HBM
Packaging Technology	Forgoes CoWoS (Expected)	CoWoS
Estimated Memory Bandwidth (TB/s)	~1.7 (Predicted)	4

Price Point & Tech Specs: What We Know About the Upcoming Chip

Here’s where it gets really interesting for investors and tech enthusiasts.

Expected Price: Between $6,500 and $8,000 USD (approximately ¥46,800 to ¥57,600 RMB).
Comparative Pricing: This is a significant drop from the H20’s price, which ranged from $10,000 to $12,000 USD (approximately ¥72,000 to ¥86,400 RMB).

But, as you might expect with a lower price, there are some trade-offs.

The chip specifications and manufacturing requirements are also reportedly being scaled back.

Here’s the lowdown on the tech side:

Base Design: Rumored to be based on Yingweida (英伟达) – Nvidia’s RTX Pro 6000D.
Memory: It will likely use traditional GDDR7 memory, not the more advanced High Bandwidth Memory (HBM) found in higher-end models. This is a key differentiator.
Packaging: It’s also expected to forgo Taijidian (台积电) – TSMC’s advanced CoWoS packaging technology. This impacts density and performance but helps navigate restrictions and costs.

Navigating the Maze: Nvidia’s Stance on U.S. Regulations

An Yingweida (英伟达) – Nvidia spokesperson shed some light on the company’s position.

They stated that Nvidia is still carefully evaluating its “limited” options.

“Until we have defined a new product design and received U.S. government approval,” the spokesperson candidly admitted, “we are effectively shut out of China’s $50 billion USD (approximately ¥360 billion RMB) data center market.”

That’s a massive market to be sidelined from, making these new chip developments crucial.

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Nvidia’s Attempts at China-Specific GPUs (Amidst Restrictions)

Attempt 1: Initial offerings like A100, H100 (restricted).
Attempt 2: Developed China-specific variants like A800, H800 (later restricted).
Attempt 3: H20 variant (effectively banned).
Current Effort: Developing new Blackwell architecture chips for compliance (rumored 6000D/B40).

More in the Hopper? Another Blackwell Chip for China Rumored

And there’s more – a couple of other sources suggest Yingweida (英伟达) – Nvidia isn’t putting all its eggs in one basket.

They’re also reportedly developing another Blackwell architecture chip specifically for China.

Production for this second chip could potentially start as early as September.

This suggests a multi-pronged strategy to cater to the Chinese market within the existing regulatory framework.

Why China Still Looms Large for Nvidia (Despite Headwinds)

Let’s not forget, for Yingweida (英伟达) – Nvidia, China is still a beast of a market.

Even with a reduced market share in recent years, China accounted for a hefty 13% of its sales last fiscal year.

Just last week, Yingweida (英伟达) – Nvidia CEO Huang Renxun (黄仁勋) – Jensen Huang, speaking at the Computex 2025 conference in Taipei, China, highlighted a dramatic shift.

He stated that Nvidia’s market share in China has plunged from over 95% before 2022 to the current 50%.

This drop underscores the impact of U.S. restrictions and the rise of local competitors, making any compliant chip offering vital for Nvidia.

Nvidia’s China Market Share Trend
Period	Estimated Market Share in China
Before 2022	Over 95%
Current	~50%

The U.S. Restriction Gauntlet: Nvidia’s Third Swing at a China-Specific GPU

This isn’t Yingweida (英伟达) – Nvidia’s first rodeo trying to tailor GPUs for China amidst the U.S. government’s ongoing restrictions on the nation’s technological development.

This marks the third time the company has had to go back to the drawing board for China-specific GPUs.

Sources mentioned that after the U.S. effectively banned the H20 GPU in April of this year, Yingweida (英伟达) – Nvidia initially considered developing a downgraded version of the H20 for China.

However, that plan apparently didn’t pan out.

Huang Renxun (黄仁勋) – Jensen Huang also commented last week that under the current U.S. export restrictions, the company’s older Hopper architecture can no longer accommodate further modifications.

This makes the shift to the new Blackwell architecture for these China-specific chips all the more significant.

Decoding the Specs: Engineering to Meet U.S. Export Limits

So, how might this new chip fit within the tight U.S. export rules?

Estimates from U.S. investment bank Jefferies provide some clues.

The new U.S. chip export rules are believed to limit memory bandwidth to around 1.7-1.8 TB/s.

For context, the H20 GPU clocked in at a speed of 4 TB/s.

It’s predicted that the new GPU, by leveraging GDDR7 memory technology, will achieve speeds of approximately 1.7 TB/s.

This would cleverly place it within the permissible export control limits.

What’s in a Name? Potential Monikers for the New GPU

While nothing is confirmed, the rumor mill is buzzing with potential names.

Recent industry whispers suggest that this new Yingweida (英伟达) – Nvidia GPU might be dubbed the 6000D or perhaps the B40.

Keep an eye out for official announcements as this story develops.

This strategic pivot highlights how crucial the Chinese market remains for global tech leaders like Nvidia, and the innovative lengths they’ll go to navigate complex geopolitical challenges, all while trying to maintain a competitive edge with their new China-specific GPU offerings.