NVIDIA, AMD to Launch AI Chips in China Amid U.S. Export Restrictions

Taipei, Taiwan, May 29, 2025 – Major chipmakers NVIDIA and AMD are set to introduce new AI-focused graphics processing units (GPUs) tailored for the Chinese market to comply with stringent U.S. export restrictions on advanced semiconductor technology. According to industry sources, NVIDIA is preparing to launch a scaled-down AI GPU, code-named B20, while AMD is developing its Radeon AI PRO R9700 workstation GPU to address AI workload demands in China. Sales of these chips are expected to commence in July, marking a strategic move to navigate U.S. regulations while maintaining a foothold in China’s lucrative AI market.

Did You Know?
China accounts for approximately 20% of global semiconductor demand, making it a critical market for chipmakers despite U.S. export restrictions, according to recent industry reports.

Navigating U.S. Export Controls

The U.S. has imposed tight restrictions on exporting cutting-edge semiconductor technologies to China, prompting NVIDIA and AMD to design compliant AI chips with reduced performance capabilities. NVIDIA’s B20 GPU, built on its Blackwell architecture, is expected to retail at $6,500-$8,000, significantly lower than its H20 GPUs, which are priced between $10,000 and $12,000.

AMD’s Radeon AI PRO R9700 is positioned as a workstation-grade solution for AI tasks, targeting China’s growing demand for machine learning and data processing. These adaptations allow both companies to adhere to export controls while addressing the needs of Chinese enterprises investing heavily in AI infrastructure.

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Financial Impacts and Market Strategy

NVIDIA recently reported a substantial financial hit due to these export restrictions, incurring a $4.5 billion charge in the first quarter of 2025 for licensing requirements that limited sales of its H20 AI chips in China. The company also noted an inability to ship $2.5 billion worth of H20 chips in the same period. Looking ahead, NVIDIA forecasts an $8 billion revenue loss in the second quarter due to ongoing restrictions.

Despite these challenges, both NVIDIA and AMD are leveraging their new chip designs to maintain market presence in China, where AI adoption is accelerating across industries like healthcare, finance, and autonomous vehicles. Recent industry data highlights China’s AI market is projected to reach $26 billion by 2026, underscoring the strategic importance of these new offerings.