As the United States contemplates stricter trade restrictions to block advanced chip technology from reaching China, Nvidia, a chipmaker based in the U.S., is reportedly developing a version of its new artificial intelligence chips that adhere to these regulations.
Nvidia is creating a variant of its Blackwell AI chips specifically for the Chinese market, according to a report from Reuters, which cited sources familiar with the situation. The company plans to collaborate with a local distributor, Inspur, to introduce and market the chip, tentatively named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025, as indicated by a source. Nvidia has chosen not to comment on these developments.
The chipmaker has already produced three chips that are designed to meet U.S. export control requirements, one of which is the H20. Nvidia reduced prices for the H20 due to sluggish sales in order to compete with rival Huawei’s chips. However, recent reports suggest that sales of the H20 are now on the rise, with projections indicating that Nvidia could sell over one million H20 chips in China this year, totaling around $12 billion in revenue despite existing U.S. trade restrictions. This sales estimate is nearly double what Huawei anticipates for its Ascend 910B chip.
At the same time, analysts from Jefferies have noted that Nvidia’s H20 chips face risks under potential new U.S. trade regulations. The annual review of U.S. semiconductor export controls in October could result in a ban on the H20 chip sales to China, according to analysts. They outlined three potential methods for implementing this ban, including a product-specific prohibition, a reduction in the maximum computing power, or limitations on memory capacity.
Additionally, the U.S. may broaden its export controls to apply to chips sold to neighboring countries such as Malaysia, Indonesia, and Thailand, or to extend these restrictions to foreign Chinese companies, although this latter option may prove more challenging to enforce.