As the U.S. evaluates stricter trade measures aimed at preventing advanced chip technology from reaching China, Nvidia, a leading American chipmaker, is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.
According to reports, Nvidia is working on a chip referred to as the “B20” tailored for the Chinese market, in collaboration with local distribution partner Inspur. This updated version of its Blackwell AI chips is expected to start shipping in the second quarter of 2025.
The company has already designed three chips that comply with U.S. export restrictions, including the H20, for which it recently lowered prices to enhance competitiveness against domestic rival Huawei. Sales of the H20 are reportedly on the rise, with estimates indicating that Nvidia may sell over one million units of this chip in China this year, generating around $12 billion in revenue, despite the existing trade limitations.
Analysts note, however, that Nvidia’s H20 chips could face challenges under potential new U.S. trade rules. A routine annual assessment of semiconductor export controls by the U.S. in October could lead to a ban on the sale of the H20 to China, with possible enforcement methods including product-specific bans or reductions in computing power limits. Additionally, there are indications that the U.S. may extend export controls to include chips sold to other Southeast Asian nations, as well as to overseas Chinese companies, although implementing such measures could prove to be complex.