NVIDIA and AMD Prepare New AI Chips for China Amid US Export Restrictions

NVIDIA and AMD's New AI Chip Strategy for China

In response to stringent US export restrictions on advanced semiconductor technology, chip giants NVIDIA and AMD are gearing up to introduce new AI-focused GPUs tailored for the Chinese market. This strategic move comes as both companies seek to maintain their foothold in one of the world's largest AI chip markets while navigating complex geopolitical challenges 1

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The New Offerings

NVIDIA is reportedly developing a budget AI chip codenamed "B20," based on its cutting-edge Blackwell architecture. This GPU is expected to be priced between $6,500 and $8,000, significantly lower than the company's current H20 GPUs, which sell for $10,000-$12,000 each 1

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AMD, not to be left behind, is preparing to launch the Radeon AI PRO R9700 workstation GPU. This chip is specifically designed for local AI inference and other AI workloads, with the capability to scale for multi-GPU setups 2

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Source: Tom's Hardware

Compliance with US Restrictions

Both companies are modifying their designs to ensure compliance with US export controls. NVIDIA's B20 chip will feature downgraded compute and memory dies, while AMD's offering is expected to use GDDR6 memory instead of more advanced options 2

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These new chips, while less powerful than their unrestricted counterparts, are still anticipated to generate significant interest among Chinese institutions due to their optimization for existing AI models and compatibility with current hardware 2

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Financial Impact and Market Dynamics

The export restrictions have already taken a substantial toll on both companies. NVIDIA reported a $4.5 billion charge in Q1 2025 due to licensing requirements affecting H20 AI chip sales to Chinese companies. The company forecasts an additional $8 billion revenue impact in Q2 1

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AMD, while less affected, still faces an $800 million write-off due to restrictions on its MI308 chip 2

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Competitive Landscape in China

Source: TweakTown

The introduction of these new chips comes at a critical time in the Chinese AI market. Domestic companies, such as Huawei, are rapidly developing their own AI chip alternatives, spurred on by the export controls 2

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NVIDIA CEO Jensen Huang acknowledged this shift, stating, "AI researchers are still doing AI research in China. They have a lot of mobile technology they would use if they didn't have Nvidia. If they don't have enough Nvidia, they will use their own!" 2

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Future Outlook

Despite the challenges, both NVIDIA and AMD remain committed to the Chinese market. The companies are expected to begin selling these new GPUs in China starting from July 2025 1

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Source: Wccftech

However, the long-term effectiveness of this strategy remains uncertain. As NVIDIA's Huang noted, "I think, all in all, the export control was a failure -- the facts would suggest it." This sentiment underscores the complex interplay between technological innovation, market forces, and geopolitical considerations in the global AI chip industry 2

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