As the United States considers implementing stricter trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a U.S.-based chip manufacturer, is reportedly developing a new version of its artificial intelligence chips to comply with these regulations.
According to reports from unnamed sources, Nvidia is focused on creating a variant of its upcoming Blackwell AI chips specifically for the Chinese market. The chipmaker plans to collaborate with local distributor Inspur to introduce and market the chip, which is tentatively named the “B20,” in China.
The B20 chip is projected to begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on this development.
Nvidia currently has three chips designed to meet U.S. export requirements, including the H20, for which it has lowered prices due to sluggish sales in order to compete with similar products from Chinese rival Huawei. However, sales of the H20 have reportedly resumed growth. Analysts estimate that Nvidia is likely to sell over one million H20 chips in China this year, generating approximately $12 billion in revenue, despite existing U.S. trade restrictions. This projection is nearly double Huawei’s anticipated sales for its Ascend 910B chip, according to data from SemiAnalysis.
At the same time, analysts from Jefferies have indicated that Nvidia’s H20 chips may face further risks under upcoming U.S. trade regulations. The annual review of semiconductor export controls is expected in October, and Jefferies analysts predict that it is quite probable the H20 chip will be prohibited from being sold in China. Potential avenues for a ban could include specific restrictions on the product, a reduction in the allowed computing power, or limitations on memory capacity.
Additionally, there is a possibility that the U.S. could broaden its export controls to include chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, or expand them to cover overseas Chinese companies, although implementing such measures would be more challenging, analysts noted.