As the U.S. contemplates stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, a prominent U.S. chip manufacturer, is reportedly developing a version of its AI chips tailored to align with these regulations.
According to sources familiar with the matter, Nvidia is focusing on its new Blackwell AI chips for the Chinese market and will collaborate with local distributor Inspur to introduce and sell the chip, provisionally named the “B20,” in China.
The B20 is projected to begin shipping in the second quarter of 2025. Nvidia has not publicly commented on this development.
Nvidia has already produced three chips that adhere to U.S. export regulations, including the H20, which the company has priced competitively in light of sluggish sales against local rival Huawei. Recent reports indicate that sales of the H20 are increasing, with Nvidia anticipated to sell over one million units in China this year, valued at approximately $12 billion, despite existing trade barriers. This figure is nearly double Huawei’s expected sales for its Ascend 910B chip.
However, analysts from Jefferies have raised concerns that Nvidia’s H20 chips could face additional scrutiny under new U.S. trade rules. They suggest that during the upcoming annual review of semiconductor export controls, it is “highly likely” that the H20 will be prohibited for sale in China. Such a ban could manifest in various ways, including a specific product ban, adjustments to computing power limitations, or restrictions on memory capacity.
Moreover, the U.S. may extend its export controls to include chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even impose restrictions on overseas companies tied to China, although implementing such measures may prove challenging.