As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from reaching China, U.S.-based chipmaker Nvidia is reportedly developing a version of its new artificial intelligence chips to align with these regulations.
According to unnamed sources cited by Reuters, Nvidia is focusing on a specific model of its Blackwell AI chips tailored for the Chinese market. The company plans to collaborate with a local distribution partner, Inspur, to introduce and market the chip, which is tentatively named the “B20,” in China.
The B20 is expected to begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on the reports.
Nvidia currently has three chip models designed to comply with U.S. export controls, including the H20, which the company lowered prices for due to sluggish sales driven by competition from domestic rival Huawei. Nevertheless, sales of the H20 are reportedly on the rise. According to the Financial Times and data from SemiAnalysis, Nvidia anticipates selling over one million H20 chips in China this year, amounting to around $12 billion, despite ongoing U.S. trade restrictions. This projected sales figure is nearly double Huawei’s expectations for its Ascend 910B chip.
However, analysts from Jefferies have noted that Nvidia’s H20 chips could face additional risks under impending U.S. trade regulations. They suggest that during the U.S. annual review of semiconductor export controls in October, there is a strong possibility that the H20 will be prohibited from being sold to China. The potential ban could manifest in several ways, such as a product-specific ban, a reduction in the allowable computing power, or limitations on memory capacity.
Furthermore, the U.S. may consider extending export controls on chips to other countries in the region, including Malaysia, Indonesia, and Thailand, or to overseas Chinese companies, though the latter would pose implementation challenges according to analysts.