Nvidia to Launch Cheaper AI Chips for China by June 2025

Cheaper AI Chips for China: Nvidia which is a leading chipmaker is planning to launch a new set of artificial intelligence (AI) chips for the Chinese market. These new chips will be more affordable compared to previous models. According to sources, the company may begin mass production as early as June 2025.

Cheaper AI Chips for China:

The new chips will belong to Nvidia’s latest “Blackwell” series. They are expected to cost between $6,500 and $8,000, which is lower than the $10,000–$12,000 price range of the earlier H20 model. This reduced price is due to simpler designs and less advanced parts.

Instead of using high-end memory and packaging technologies, the new chips will be based on Nvidia’s RTX Pro 6000D and will use GDDR7 memory. They will also not rely on advanced manufacturing by Taiwan Semiconductor Manufacturing Company (TSMC), such as the CoWoS packaging method.

Nvidia has faced challenges due to U.S. government restrictions that limit the export of high-performance chips to China. These rules aim to slow China’s progress in advanced technology, especially in AI. As a result, Nvidia’s sales in China have dropped from 95% market share to about 50%. Its biggest rival now is Huawei, which produces its own AI chips called the Ascend 910B.

Because of the restrictions, Nvidia had to cancel sales worth around $15 billion and write off $5.5 billion in chip inventory. The company is now trying to adjust its products to meet U.S. rules while still doing business in China.

The new AI chips are being designed with just enough power to stay within export limits. Experts say the memory bandwidth—the speed at which data moves between the chip and memory will be around 1.7 terabytes per second which is the new legal maximum.

Nvidia may also release another Blackwell-based chip later in 2025, around September.

Nvidia is working hard to keep its place in China’s $50 billion AI market by creating chips that are powerful enough for AI tasks but still legal to export under U.S. rules.

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