As the United States evaluates stricter trade measures to limit the arrival of advanced chip technology in China, Nvidia, a leading American chipmaker, is reportedly developing a variant of its latest artificial intelligence chips to adhere to these regulations.
According to sources familiar with the situation, Nvidia is creating a version of its new Blackwell AI chips designated for the Chinese market, known tentatively as the “B20.” The company is set to collaborate with a local distribution partner, Inspur, for the launch and sale of this chip in China.
The B20 is anticipated to begin shipping in the second quarter of 2025, according to sources. Nvidia has chosen not to comment on these developments.
Currently, the chipmaker offers three chips specifically designed to meet U.S. export controls, including the H20, which Nvidia has recently reduced prices for amid declining sales in order to compete with domestic rival Huawei. However, sales of the H20 have started to increase, as reported by sources. Nvidia is projected to sell more than one million of its H20 chips in China this year, valued at approximately $12 billion, despite existing U.S. trade restrictions, as highlighted by financial data from SemiAnalysis. This forecast is nearly double that of Huawei’s anticipated sales for its Ascend 910B chip.
In addition, analysts from Jefferies have indicated that Nvidia’s H20 chips might face challenges under potential future U.S. trade regulations. As the U.S. approaches its annual review of semiconductor export controls in October, there is a strong possibility that the H20 could be prohibited from being sold to China, as outlined in the analysts’ note. Potential methods for this ban could include a product-specific restriction, a reduction in the computing power limit, or a cap on memory capacity.
Furthermore, the U.S. might broaden its export controls on chips for other countries in the region, such as Malaysia, Indonesia, and Thailand, or apply these restrictions to overseas Chinese companies, although implementing such measures could prove more challenging, according to industry analysts.