China's VeriSilicon fails to hit limit up, now up 17%; ByteDance denies AI chip cooperation with company

China's VeriSilicon fails to hit limit up, now up 17%; ByteDance denies AI chip cooperation with company

Nvidia is ramping up its efforts to maintain its presence in the Chinese market by developing two new AI chips tailored for the region. The company aims to skirt U.S. export restrictions and defend its market share. The first chip, tentatively called the B30A, is based on the latest Blackwell architecture and will be delivered to Chinese customers for testing by September [1].

The B30A will feature a single-die design, offering approximately half the raw computing power of Nvidia's flagship dual-die B300 accelerator, but more potent than the H20 model currently allowed in China. It will include high-bandwidth memory and NVLink connectivity, similar to the H20 chip [1].

In parallel, Nvidia is preparing to roll out another China-specific processor, the RTX6000D, which is also based on Blackwell but optimized for AI inference. This chip will feature conventional GDDR memory and bandwidth capped at 1,398 GB/s, just under the 1.4 TB/s limit imposed by new U.S. rules. The RTX6000D is scheduled for initial deliveries in September and is expected to be priced below the H20 model [1].

Analysts remain divided on Nvidia's outlook in China. Bernstein warns that U.S. export controls and the rise of local players like Huawei could shrink Nvidia's market share from 66% in 2024 to 54% in 2025, with China's AI chip localization ratio climbing to 55% by 2027 [1]. Conversely, Needham projects $20 billion in China data center sales by fiscal 2028, supported by strong demand for upcoming Blackwell GPU variants [1].

Nvidia's stock has gained 36% year-to-date, driven by Big Tech giants like Microsoft and Alphabet increasing their AI ambitions and fueling demand for Nvidia processors [1]. The company has also agreed to a deal requiring it to hand over 15% of revenue from advanced chip sales in China to the U.S. government [1].

References:
[1] https://www.benzinga.com/markets/tech/25/08/47204794/nvidia-prepares-new-china-specific-ai-chip-to-defend-market-share