As the United States explores stricter trade regulations to restrict advanced chip technology from being sold to China, Nvidia, a U.S.-based semiconductor company, is reportedly developing a new version of its artificial intelligence chips that adheres to these regulations.
According to sources familiar with the situation, Nvidia is designing its Blackwell AI chips specifically for the Chinese market and intends to collaborate with local distribution partner Inspur for the launch and sale of a chip provisionally named the “B20.” Shipment of the B20 is projected to begin in the second quarter of 2025.
Nvidia has created three chips tailored to meet U.S. export control standards, including the H20, which the company has reduced in price to boost sales against competing products from Chinese manufacturer Huawei. Reports indicate that sales of the H20 are now increasing, with Nvidia anticipated to sell over one million units in China this year, valued at approximately $12 billion, despite existing trade limitations. This figure nearly doubles Huawei’s projected sales for its Ascend 910B chip.
However, the H20 chips may face challenges due to potential new U.S. trade regulations, as analysts from Jeffries suggested that during the annual review of semiconductor export controls this October, there is a “high likelihood” that the H20 will be prohibited from being sold to China. This ban could be enacted through various means, such as imposing a specific product ban, lowering the performance limits, or restricting memory capacity.
Additionally, the U.S. may expand its export controls to chips sent to other countries in the region, including Malaysia, Indonesia, and Thailand, or could extend these controls to Chinese companies operating overseas, although the latter could present implementation challenges, as noted by analysts.