Nvidia Corp (NASDAQ:NVDA, ETR:NVD) is planning to release a cheaper version of its Blackwell AI chip for the Chinese market, with mass production expected to begin as early as June 2025, according to a Reuters report.
Sources with knowledge of the matter told the publication that this chip is reportedly designed to comply with US export restrictions and will be priced between $6,500 and $8,000, which is lower than the $10,000 to $12,000 price of the H20 model.
The chip will feature simpler specifications and manufacturing requirements to comply with US export restrictions. It will be based on Nvidia’s RTX Pro 6000D server-class graphics processor and use conventional GDDR7 memory instead of the more advanced high bandwidth memory, which is banned from export to China under current US rules.
Additionally, it will not use Taiwan Semiconductor Manufacturing Co’s advanced chip-on-wafer-on-substrate packaging technology.
A Nvidia spokesperson said the company was still evaluating its “limited” options for the Chinese market.
“Until we settle on a new product design and receive approval from the US government, we are effectively foreclosed from China’s $50 billion data center market,” the spokesperson said.
The US restricts the export of advanced chips and chipmaking equipment for use in China to prevent the technology from aiding military and AI development.