Nvidia and AMD to Launch New AI Chips in China Starting July
In response to U.S. export restrictions on advanced semiconductor technologies to China, chip manufacturers Nvidia and AMD are preparing to release newly designed graphics processing units (GPUs) tailored for AI workloads in the Chinese market. According to Taiwan-based tech publication Digitimes, which cited sources within the supply chain, the launch is expected to take place in July 2025.
Custom Products for the Chinese Market
The move marks a strategic effort by both companies to maintain their market presence in China despite regulatory challenges. Nvidia is set to introduce a scaled-down AI-focused GPU, codenamed B20, which has been developed in compliance with current U.S. export controls.
Meanwhile, AMD plans to cater to AI computing demands through its new Radeon AI PRO R9700 GPU, designed specifically for professional workstations within the limits of the imposed regulations.
Launch Expected in July
Both companies are reportedly aiming to bring these AI chips to the Chinese market starting July, ensuring they continue to serve one of the world’s largest technology consumers without violating export laws.
Nvidia’s New Low-Cost AI Chip
In a separate report by Reuters, it was revealed that Nvidia is working on a more affordable AI chip based on its Blackwell architecture, developed specifically for the Chinese market. The chip is expected to be priced between $6,500 and $8,000, making it more accessible compared to the H20 chip, which currently sells for $10,000 to $12,000 per unit.
U.S. Restrictions Impact Nvidia’s Revenue
Nvidia disclosed earlier that it incurred $4.5 billion in charges in Q1 2025 due to licensing requirements that hampered its ability to sell the H20 AI chip in China. Additionally, the company was unable to ship an estimated $2.5 billion worth of H20 chips during the same period as a direct result of these export constraints.
The company forecasts a potential $8 billion revenue loss in Q2 due to continued licensing issues, highlighting the significant financial impact of geopolitical regulations on its operations.
Balancing Innovation with Compliance
These developments underscore the new reality facing the AI chip industry. Tech giants must now balance ambitious innovation strategies with rapidly evolving geopolitical landscapes. The ongoing U.S.-China tech rivalry has added complexity to an already competitive industry, particularly as AI becomes increasingly vital in sectors such as healthcare, education, manufacturing, and national security.
Looking Ahead
Despite these hurdles, Nvidia and AMD’s ability to redesign and adapt their products for different regulatory environments showcases their resilience and strategic foresight. As demand for AI applications grows globally, these companies are navigating a fine line between compliance and competitiveness.
With ongoing tensions between the U.S. and China, the Chinese market remains a critical focus for technology companies—offering immense potential not only in revenue but also as a testing ground for customized, regulation-compliant AI solutions.