To comply with tightening U.S. export controls on advanced semiconductor technology, chip giants Nvidia and AMD are preparing to launch specialized AI GPUs in China. According to industry reports from DigiTimes, citing supply chain sources, both companies aim to begin shipments as early as July.
Strategic Adjustments for the Chinese Market
Nvidia is moving forward with a modified AI GPU, internally codenamed “B20,” designed to bypass existing trade limitations while maintaining performance for specific workloads. Simultaneously, AMD is positioning its new Radeon AI PRO R9700 workstation GPU to capture demand within the Chinese artificial intelligence sector.
Shifting Pricing and Architecture
Reports from Reuters indicate that Nvidia’s upcoming chip will utilize the advanced Blackwell architecture. The strategy focuses on a more aggressive price point, with estimates ranging between $6,500 and $8,000. This represents a significant reduction compared to the H20 GPUs, which typically retail between $10,000 and $12,000.
Financial Impact of Export Curbs
The regulatory environment continues to weigh heavily on Nvidia’s balance sheet. During its latest Q1 fiscal 2026 earnings report, the company disclosed a $4.5 billion charge attributed to licensing requirements that hampered H20 chip sales. Furthermore, the company was unable to fulfill $2.5 billion worth of H20 shipments during the same period.
Looking ahead, the fiscal pressure remains constant. Nvidia projects that ongoing export compliance measures will result in an $8 billion revenue impact throughout the second quarter, underscoring the high stakes involved in navigating U.S.-China semiconductor trade policy.