Nvidia’s B20: A Strategic Play Amid U.S.-China Chip Tensions

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As the United States deliberates on stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a leading chip manufacturer based in the U.S., is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.

According to reports from unnamed sources, Nvidia is focusing on creating a model of its Blackwell AI chips intended for the Chinese market. The company plans to collaborate with a local distribution partner, Inspur, to introduce and market this chip, tentatively named the “B20,” in China.

Insiders indicated that the B20 is expected to begin shipping in the second quarter of 2025. Nvidia has opted not to comment on these developments.

Nvidia currently has three chips designed to comply with U.S. export regulations, one of which is the H20. The company reduced prices on the H20 to counteract weak sales against domestic competitor Huawei. However, sources reported that sales for the H20 are now on the rise, with Nvidia projected to sell over one million of these chips in China this year, potentially generating around $12 billion in revenue despite existing U.S. trade restrictions. This forecast is nearly double Huawei’s anticipated sales for its Ascend 910B chip.

Additionally, analysts from Jefferies have warned that Nvidia’s H20 chips might face further risks under impending U.S. trade policies. They suggest that during the annual review of semiconductor export controls in October, it is highly probable that the H20 could be prohibited from being sold to China. This prohibition might be enforced through various methods, which could include a product-specific ban, a reduction in computing power limits, or restrictions on memory capacity.

Furthermore, the U.S. may consider extending its export controls to chips sold to other regional nations, such as Malaysia, Indonesia, and Thailand, or even broaden these controls to overseas Chinese firms, although the latter proposition may present implementation challenges, according to analysts.

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