As the United States explores stricter trade measures to restrict advanced chip technology from reaching China, Nvidia, a prominent American semiconductor manufacturer, is reportedly developing a version of its latest artificial intelligence chips to adhere to these regulations.
According to sources familiar with the situation, Nvidia is crafting a variant of its Blackwell AI chips for the Chinese market, which is expected to be distributed in partnership with local firm Inspur. This new chip, tentatively named the “B20,” is anticipated to commence shipping in the second quarter of 2025. Nvidia has not provided any comments regarding this development.
Nvidia has already designed three chips that comply with U.S. export regulations, including the H20, for which it recently lowered prices to boost sales against competition from domestic rival Huawei. Reports indicate that sales of H20 chips are on the rise, with expectations of over one million units being sold in China this year, amounting to approximately $12 billion, despite the ongoing trade restrictions.
However, concerns have been raised by analysts from Jeffries about the future of Nvidia’s H20 chips under potential new U.S. trade regulations. The annual review of semiconductor export controls in October may lead to a ban on H20 sales to China, which could be executed through various methods, including specific product bans or adjustments to computing power and memory capacity limits.
The U.S. may also expand its export controls to include chips sold to other Southeast Asian nations like Malaysia, Indonesia, and Thailand, or extend these controls to Chinese businesses operating internationally, although implementing such measures could prove more challenging.