American chip manufacturer Nvidia is preparing to launch an affordable artificial intelligence (AI) chip for China. Its mass production can begin from June 2025. News agency Reuters have given this information quoting sources.
This new chip will be part of the company’s new Blackwell-series and is expected to be priced between $ 6,500 to $ 8,000. This price is much lower than the current current model of Nvidia ($ 10,000 – $ 12,000). The US has banned its exports, due to which the company has limited its production.
What will be the specification of the new chip?
According to the report, the reason for the low price is the limited technical capabilities of the chip and the relatively simple manufacturing process. The new chip will be based on the RTX Pro 6000D server-class graphics processor. GDDR7 memory will be used in this. This will not be the option of advanced High Bandwidth Memory (HBM).
Apart from this, this chip Taiwan Semiconductor Manufacturing Co. (TSMC) ‘high-end chip-on-wafer-on-substrate (Cowos) will also not use packaging technology.
Third custom chip for China
China still remains an important market for NVIDIA. From there, the company received 13% revenue in the last financial year. Due to the technical sanctions of the US government, NVIDIA has to design a custom chip especially for the third time for China.
Last week, CEO Jenson Huang of NVidia said that the company’s old Hopper architecture is no longer worth making technical changes under the current US export sanctions.
This new step of NVIDIA is being seen as a strategy to maintain its market share in China among American restrictions. However, it will also be seen what the US government takes on the new decision of NVIDIA.
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