[News] NVIDIA’s New China AI Chip Reportedly Ditches TSMC’s CoWoS, HBM for 30% Price Cut

After NVIDIA’s H20 has been restricted by the latest U.S. AI chip export curbs, the U.S. chip giant has been reportedly working on a new chipset targeting the market. According to Reuters, the Blackwell-based chip could debut as early as June and cost over 30% less than the H20.

Reuters points to NVIDIA’s choice of memory and packaging as key reasons for the chip’s lower price. Notably, the new model will reportedly forgo TSMC’s advanced CoWoS packaging. In addition, it is expected to be based on the RTX Pro 6000D—a server-grade GPU—paired with standard GDDR7 memory rather than the more expensive HBM, the report adds.

Cheaper than Huawei’s Ascend 910B?

Reuters estimates the new GPU will be priced between $6,500 and $8,000—significantly lower than the H20’s $10,000 to $12,000 range. Another report from South Korean media outlet News Pim suggests that it is even cheaper than Huawei’s Ascend 910B.

According to News Pim, NVIDIA’s upcoming lower-spec “H20 Lite” is drawing attention for its strong appeal to local companies in China. The report notes that though it delivers about 65% of the H20’s performance, it still packs enough power to run large language models. The chip swaps out costly HBM for more affordable GDDR7 memory, which should still handle long text processing tasks, it adds.

NVIDIA CEO Jensen Huang said last week at the sidelines of COMPUTEX 2025 that the older Hopper architecture—used in the H20—can no longer be modified to meet current U.S. export rules.

An NVIDIA spokesperson cited by Reuters said the company is still weighing its “limited” options. Without finalizing a new product design and securing U.S. government approval, NVIDIA is effectively barred from accessing China’s $50 billion data center market, the spokesperson said.

Another Custom Chip in the Works?

It is worth noting that in addition to the product, NVIDIA is also working on another Blackwell-based chip for China, with mass production likely to begin as early as September, though its specs remain unclear, as per Reuters.

Jensen Huang revealed last week that how U.S. chip export controls have hammered the AI chip giant’s position in China. Once commanding 95% of the Chinese market four years ago, NVIDIA now holds just 50%, with local rivals rushing in to take the rest, according to Reuters.

NVIDIA is set to announce its Q1 FY26 earnings report on May 28^th, likely shedding more light on U.S. export curbs and its new chip in development. As per CNBC, The H20 ban hit NVIDIA hard—forcing a $5.5 billion inventory write-off. CEO Jensen Huang also revealed that the company had to give up $15 billion in potential sales, the report says.

Read more

• [News] NVIDIA Ditches Hopper, Reportedly Turns to Blackwell for China-Specific AI Chip
• [News] NVIDIA Said to Build Shanghai R&D Hub Amid U.S. Export Curbs, But Core Design Could Stay Abroad

(Photo credit: NVIDIA)