Responding to the intensified U.S. export restrictions, Nvidia is preparing to launch a new GPU based on its Blackwell architecture, targeting the Chinese market. Mass production of the chip is reported to begin as early as June 2025. The expected price, between $6,500 and $8,000, is significantly lower than that of the H20 model, the previous standard offering, which ranged between $10,000 and $12,000. The price drop is attributable to technical downgrades applied to comply with export regulation thresholds.
The new Blackwell-based GPU will use GDDR7 memory rather than high-bandwidth memory (HBM) and skip TSMC’s advanced Chip-on-Wafer-on-Substrate (CoWoS) packaging. This allows Nvidia to maintain its presence in the Chinese market while acclimating to recent regulations that cap GPU memory bandwidth, a critical requirement for AI workloads. The new chip is likely derived from the RTX Pro 6000D platform, allowing it to stay within the 1.7-1.8 TB/s bandwidth limit imposed by U.S. authorities. This is a steep drop from the H20’s 4 TB/s capability.
Nvidia’s market share in China has declined from 95% before 2022 to around 50% currently, as Huawei’s Ascend 910B chip gains traction. Following the H20 ban, the company wrote off $5.5 billion in inventory and forfeited an estimated $15 billion in sales. A second Blackwell-series GPU tailored for China is also said to be in development, with its production anticipated in September.
This is the third time Nvidia has had to revise its products for China. The company has acknowledged that its ability to operate in the region remains constrained. “Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China's $50 billion data center market,” a company spokesperson stated.
