As the U.S. evaluates stricter trade measures to prevent advanced chip technology from being transferred to China, U.S.-based semiconductor manufacturer Nvidia is reportedly developing a version of its latest artificial intelligence chips that aligns with these regulations.
Sources indicated to Reuters that Nvidia is creating a variant of its Blackwell AI chips for the Chinese market. The company plans to collaborate with a local distribution partner, Inspur, to introduce and market the chip, which is provisionally named the “B20,” within China.
The B20 is anticipated to commence shipping in the second quarter of 2025, according to a source familiar with the situation. Nvidia has not provided any comments regarding this development.
The chipmaker currently has three products that are designed to meet U.S. export regulations, including the H20, which Nvidia has lowered prices on in response to sluggish sales while competing against technology from local rival Huawei. However, reports suggest that sales for the H20 are now increasing, with projections indicating that Nvidia may sell over one million H20 chips in China this year, amounting to approximately $12 billion, despite ongoing U.S. trade restrictions. This figure is nearly double the sales expectations for Huawei’s Ascend 910B chip, based on data from SemiAnalysis.
On the other hand, analysts at Jefferies have expressed concerns that Nvidia’s H20 chips could face challenges under potential new U.S. trade regulations. They anticipate that during the upcoming annual evaluation of semiconductor export controls scheduled for October, there is a significant chance the H20 could be prohibited for sale to China. Potential methods for imposing this ban could include a specific prohibition on the product, reducing the maximum allowable computing power, or limiting memory capacity.
Additionally, the U.S. may consider extending export controls on semiconductor sales to other nations in the region, including Malaysia, Indonesia, and Thailand, or implementing controls on overseas Chinese companies, although the latter option may pose more complex challenges, according to analysts.