As the U.S. considers imposing stricter trade restrictions to prevent advanced chip equipment from reaching China, U.S.-based chipmaker Nvidia is reportedly developing a version of its new artificial intelligence chips that will comply with these regulations.
Nvidia is creating a customized version of its new Blackwell AI chips for the Chinese market, as reported by Reuters, citing unnamed sources familiar with the situation. The company will reportedly collaborate with local distribution partner Inspur to launch and sell the chip, tentatively named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025, according to a source cited by Reuters. Nvidia declined to comment on the matter.
Nvidia has developed three chips specifically designed to comply with U.S. export controls, including the H20, which saw price reductions amid weak sales to compete with chips from domestic rival Huawei. Nonetheless, H20 sales are now increasing, according to sources. Nvidia is projected to sell more than one million H20 chips in China this year, valued at approximately $12 billion, despite U.S. trade restrictions, the Financial Times reported, citing data from SemiAnalysis. This expected sales figure is nearly double Huawei’s sales projections for its Ascend 910B chip.
However, Nvidia’s H20 chips could face risks under additional U.S. trade rules, according to analysts at Jeffries. During the U.S. annual review of semiconductor export controls in October, it is highly likely that the H20 will be banned from sale to China, Jeffries analysts wrote in a note. The ban might be implemented through a product-specific ban, lowering the computing power cap, or imposing a memory capacity limit, the analysts suggested.
The U.S. might also extend export controls on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or apply the controls to overseas Chinese companies, although this would be more challenging to enforce, according to the analysts.