As the U.S. contemplates stricter trade measures to restrict advanced chip technology from being supplied to China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a new version of its artificial intelligence chips that aligns with these regulations.
Nvidia is creating a model of its Blackwell AI chips specifically for the Chinese market, as per reports from unnamed sources. The company is expected to collaborate with Chinese distributor Inspur to introduce and market a chip tentatively named the “B20” in China.
The B20 is projected to begin shipping in the second quarter of 2025. Nvidia has not provided any comments regarding this development.
Nvidia has already designed three chips that adhere to U.S. export controls, including the H20, which the company lowered prices for to combat weak sales against domestic rival Huawei. Sources indicate that sales of the H20 are now increasing, with Nvidia anticipated to sell over one million of these chips in China this year, generating approximately $12 billion in revenue, despite existing U.S. trade limitations. This sales projection is nearly double Huawei’s expected sales for its Ascend 910B chip.
However, Nvidia’s H20 chips may face risks from potential new U.S. trade regulations, according to Jefferies analysts. As the U.S. conducts its annual review of semiconductor export controls in October, there is a significant probability that sales of H20 chips to China could be prohibited. The analysts noted that potential methods for such a ban could include specific product bans, reductions in computing power thresholds, or limits on memory capacity.
Moreover, the U.S. may also consider broadening export controls on chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or applying these regulations to overseas Chinese firms, although the latter would present implementation challenges.