As the U.S. evaluates stricter trade measures to restrict advanced chip technology from reaching China, Nvidia, a U.S.-based chipmaker, is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
According to reports from unnamed sources, Nvidia is working on a variant of its Blackwell AI chips targeted for the Chinese market, collaborating with a local distribution partner, Inspur, to introduce and market the chip, provisionally named the “B20.” The B20 is anticipated to begin shipping in the second quarter of 2025.
In an effort to comply with U.S. export controls, Nvidia has designed three chips, including the H20, which the company has reduced prices for following weak sales, in order to compete with offerings from domestic rival Huawei. Sales of the H20 are reportedly on the rise, with expectations to sell over one million units in China this year, valued at approximately $12 billion, despite existing trade restrictions.
However, Jefferies analysts warn that Nvidia’s H20 chips may face challenges under new U.S. trade regulations. They noted that during the U.S. annual review of semiconductor export controls in October, it’s likely that sales of the H20 to China could be restricted. Potential measures could include a specific ban on the product, adjustments to computing power limits, or restrictions on memory capacity. Furthermore, the U.S. may contemplate extending export controls to chips destined for other nations in the region, such as Malaysia, Indonesia, and Thailand, or even to Chinese companies operating abroad, though implementation of such measures could be more complex.