Nvidia has slashed the price of specialized GPUs for the Chinese market in the face of local competition from Huawei.
The GPU giant launched new products for the vast, lucrative China market last year, amid US restrictions on high-performance accelerators that are allowed to be exported to the country.
Yet as The Register noted earlier this year, Nvidia found that some customers in China weren’t all that interested in its reduced niche products, and it’s looking to accelerate AI workloads locally. Leaned towards the ready-made kit.
According to Reuters, the company has now been forced to undercut the price of some of its products from rival hardware from Chinese technology giant Huawei, and the market is claiming to have an oversupply of Nvidia’s chips due to weak demand. Is.
Nvidia has slashed the price of specialized GPUs for the Chinese market in the face of local competition from Huawei.
The GPU giant launched new products for the vast, lucrative China market last year, amid US restrictions on high-performance accelerators that are allowed to be exported to the country.
Yet as The Register noted earlier this year, Nvidia found that some customers in China weren’t all that interested in its reduced niche products, and it’s looking to accelerate AI workloads locally. Leaned towards the ready-made kit.
According to Reuters, the company has now been forced to undercut the price of some of its products from rival hardware from Chinese technology giant Huawei, and the market is claiming to have an oversupply of Nvidia’s chips due to weak demand. Is.
Nvidia declined to comment.
The company’s China-focused kit includes the H20, L20, and L2 GPUs, and it’s understood that the H20 in particular is being sold at a discount of more than 10 percent compared to Huawei’s Ascend 910B.
The performance of the Ascend 910B is claimed to be on par with Nvidia’s A100 GPU, and unlike the older Ascend 910 product, Chinese chipmaker SMIC is believed to have built the design in-house using 7nm process technology.
The development underscores the problems Nvidia is facing in China, which has accounted for between 20 percent and 25 percent of the company’s revenue in recent years.
According to some reports, that number is now down to around 17 percent and could drop further if US sanctions continue to prevent Nvidia from effectively competing against local manufacturers.
Meanwhile, Samsung has denied reports that its high-bandwidth memory (HBM) for Nvidia’s GPU products has had problems passing the necessary tests before the chips are included.
According to Reuters, which cited anonymous sources for the information, the alleged issue was related to heat and power consumption issues with Samsung’s HBM3 chips and could also affect its next-generation HBM3E products.
We asked Samsung about this, but it was not immediately available for comment. However, he told Reuters that “HBM is a custom memory product that requires an optimization process according to customer needs,” and denied that there was a problem, saying that heat and power Claims of units failing due to consumption are not true.
Nvidia declined to comment on the issue.
Demand for HBM components is likely to be short of supply, as The Register reported this week, which could increase if problems arise with Samsung-made chips.
HBM chips are made by other suppliers, but SK Hynix warned earlier this month that it had already sold everything it expected to make this year and most of its 2025 production. is, citing high demand due to the AI frenzy ®
