As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from being supplied to China, Nvidia, a U.S.-based semiconductor company, is reportedly developing a version of its new artificial intelligence chips that aligns with these regulations.
Nvidia is said to be creating a variant of its Blackwell AI chips intended for the Chinese market, collaborating with local distribution partner Inspur to introduce and market the chip, which is provisionally named the “B20.” According to sources, the B20 is expected to begin shipping in the second quarter of 2025, although Nvidia has not publicly commented on the matter.
The company has already designed three chips specifically to adhere to U.S. export controls, including the H20. Nvidia recently reduced prices for the H20 due to declining sales, aiming to compete with domestic competitor Huawei. However, reports indicate that sales for the H20 are now on the rise, with predictions that the company will sell over one million units in China this year, generating approximately $12 billion in revenue despite ongoing U.S. trade restrictions.
Nevertheless, analysts from Jeffries have cautioned that the H20 chips could be affected by additional U.S. trade regulations. According to their analysis, there is a significant likelihood that, during its annual review of semiconductor export controls in October, the U.S. could prohibit the sale of H20 chips to China. Such a ban could be enacted through various methods, including a “product-specific ban,” decreasing the computing power limit, or imposing restrictions on memory capacity.
Furthermore, there are potential plans for extending export controls on semiconductors sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or potentially extending these controls to Chinese companies operating overseas, though this would pose implementation challenges, analysts have noted.