As the United States evaluates stricter trade regulations to restrict the flow of advanced chip technology to China, Nvidia, a prominent American chipmaker, is reportedly adapting its new artificial intelligence chips to meet these emerging rules.
According to sources familiar with the situation, Nvidia is developing a version of its Blackwell AI chips specifically for the Chinese market. The company plans to collaborate with local partner Inspur to market and distribute this upcoming chip, tentatively named the “B20,” in China.
The B20 is projected to begin shipments in the second quarter of 2025. Nvidia has refrained from commenting on this matter.
To comply with U.S. export controls, Nvidia has already designed three chips, including the H20, which it has reduced prices on to remain competitive against local rival Huawei. Sales of the H20 are reportedly increasing, and estimates suggest Nvidia may sell over one million units of this chip in China this year, generating approximately $12 billion in revenue even amid stringent U.S. trade restrictions. This is in stark contrast to Huawei’s anticipated sales figures for its Ascend 910B chip.
However, Jefferies analysts warn that Nvidia’s H20 chips could face new challenges depending on upcoming U.S. trade regulations. In October, during the annual review of semiconductor export controls, there is a strong possibility that the H20 will be prohibited from being sold to China, the analysts stated. Potential methods for this ban could include a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
Furthermore, the U.S. might expand these export controls to encompass additional countries in the region such as Malaysia, Indonesia, and Thailand, or potentially to overseas Chinese firms, though such measures could be more difficult to enforce, analysts noted.