As the U.S. considers implementing stricter trade restrictions to curb the flow of advanced chip technology to China, Nvidia, a leading U.S. chip manufacturer, is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
According to unnamed sources, Nvidia is collaborating with local distributor Inspur to launch its Blackwell AI chips in China, tentatively named the “B20.” The expected launch date for the B20 is set for the second quarter of 2025. Nvidia has chosen not to comment on these reports.
The company has already produced three chips that are compliant with U.S. export controls, including the H20. Recently, Nvidia reduced the prices of the H20 in response to sluggish sales and competition from China’s Huawei. However, sources indicate that sales of the H20 are now increasing, with projections suggesting Nvidia will sell over one million units of the H20 in China this year, valued at approximately $12 billion, despite ongoing U.S. trade restrictions. This anticipated sales volume is nearly double that of Huawei’s Ascend 910B chip sales forecasts.
Nonetheless, analysts from Jeffries have warned that Nvidia’s H20 may face further risks under tightening U.S. trade regulations. When the U.S. reviews semiconductor export controls in October, there is a significant likelihood that the H20 could be banned from sale to China. This ban might be implemented through a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
Additionally, there is a possibility that the U.S. could broaden its export controls to encompass chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or extend these measures to overseas Chinese companies, though implementing such actions may prove more challenging.