DeeperML - #tsmc

Nvidia is actively working to maintain its presence in the rapidly expanding Chinese AI chip market, even amidst tightening U.S. export controls and rising domestic competition from companies like Huawei. To navigate these challenges, Nvidia is developing a cheaper, stripped-down AI chip based on its Blackwell architecture, specifically tailored for the Chinese market. This new chip is designed to comply with U.S. regulations while offering competitive performance, aiming to regain some of the market share Nvidia has been losing.

This strategic gamble involves significant cost reductions and performance trade-offs. The new processor, expected to be priced between $6,500 and $8,000, will use the RTX Pro 6000D foundation with GDDR7 memory, forgoing the high-bandwidth memory found in premium variants and Taiwan Semiconductor's advanced CoWoS packaging technology. This decision is driven by the need to meet export restrictions and lower manufacturing complexity, following a $5.5 billion writedown Nvidia absorbed after the prohibition of its H20 sales in China.

Huawei's growing influence in the Chinese AI chip landscape is a key factor driving Nvidia's strategy. Huawei's Ascend 910C and 910B processors are gaining adoption among major domestic tech firms, challenging Nvidia's dominance, particularly in inference applications. The competitive pressure extends to complete infrastructure solutions, with Huawei's CloudMatrix 384 rack system directly challenging Nvidia's Blackwell GB200 NVL72 configuration. The company hopes the new budget option will help them survive the growth of the internal competion,


References :

• www.artificialintelligence-news.com: Nvidia is preparing to go head-to-head with Huawei to maintain its relevance in the booming AI chip market of China.
• The Rundown AI: PLUS: OpenAI's o3 model finds novel security vulnerability
• insidehpc.com: Report: NVIDIA and AMD Devising Export Rules-Compliant Chips for China AI Market
• insideAI News: One of the biggest stories this week in the HPC-AI world involves — surprise! — NVIDIA.
• PCMag Middle East ai: Though he 'trusts' President Trump, Nvidia CEO Jensen Huang says banning sales of its H20 GPUs to China means that $50 billion market 'is effectively closed to US industry.' Facing billions in lost sales, Nvidia CEO Jensen Huang is urging the US to let it sell AI chips to China, though he stopped short of directly criticizing President Trump. The Trump administration has been trying to curb China's access to cutting-edge AI chips, so last month it restricted Nvidia …
• www.tomshardware.com: Nvidia reportedly developing new AI chip for China that meets export controls – B30 could include NVLink for creation of high-performance clusters

Classification:

• HashTags: #AIChips #Nvidia #TSMC
• Company: Nvidia
• Target: China
• Product: AI Chips
• Feature: AI Chips, Optical Interconnect
• Type: AI
• Severity: Informative