Nvidia is set to launch a new AI chip tailored for the Chinese market, based on its latest Blackwell architecture. This move comes in response to U.S. export restrictions that have impacted Nvidia’s sales in China. (reuters.com)
The upcoming chip, tentatively named the "B20," is expected to be priced between $6,500 and $8,000, significantly lower than the $10,000-$12,000 range of Nvidia’s previous H20 GPUs. To comply with U.S. regulations, the B20 will feature conventional GDDR7 memory instead of high-bandwidth memory and will not utilize TSMC’s advanced CoWoS packaging. Production is anticipated to begin as early as June 2025, with general availability expected by the third or fourth quarter of the year. (reuters.com)
China remains a crucial market for Nvidia, accounting for 13% of the company’s sales in the previous fiscal year. However, since 2022, Nvidia’s market share in China has declined from 95% to 50% due to ongoing U.S. export curbs. Competitors like Huawei are gaining traction with their Ascend 910B chip. Despite these challenges, Nvidia aims to maintain its competitive edge through its CUDA software ecosystem. (reuters.com)
The B20 chip is designed to stay within U.S. regulations limiting GPU memory bandwidth to 1.7-1.8 TB/s, a reduction from the H20’s 4 TB/s. This strategic adjustment allows Nvidia to continue serving the Chinese market while adhering to export restrictions. (reuters.com)
In summary, Nvidia’s forthcoming Blackwell-based AI chip for China represents a strategic adaptation to U.S. export controls, enabling the company to sustain its presence in a vital market segment.
