As the U.S. contemplates stricter trade measures to prevent the export of advanced chip technology to China, Nvidia, a U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.
According to reports from unnamed sources, Nvidia is working on a new model of its Blackwell AI chips for the Chinese market, collaborating with local partner Inspur to distribute and sell the chip, which is tentatively named the “B20.”
The B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has not provided any comments regarding this development.
The company has already created three chips specifically designed to meet U.S. export requirements, one of which is the H20. Nvidia has reduced prices on this chip in response to weak sales, as it competes with domestic rival Huawei. However, sales of the H20 have shown a positive trend, with projections indicating that Nvidia will sell over one million units in China this year, generating approximately $12 billion in revenue despite existing U.S. trade restrictions. This expected figure is nearly double the sales forecast for Huawei’s Ascend 910B chip.
On another note, analysts from Jefferies have pointed out that Nvidia’s H20 chips may face challenges under new U.S. trade regulations. They predict that during the annual review of semiconductor export controls in October, it is very likely that the H20 will be prohibited from being sold to China. Potential restrictions could take several forms, including a specific ban on the product, a reduction in the allowable computing power, or limits on memory capacity.
Furthermore, the U.S. may expand export restrictions to cover chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although implementing such measures would be more complex, according to analysts.