As the United States contemplates stricter trade measures to restrict advanced chip technology from reaching China, Nvidia, a leading American chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to meet these regulatory requirements.
Nvidia is working on a Chinese market adaptation of its Blackwell AI chips, referred to as the “B20,” in collaboration with local distributor Inspur, according to sources cited by Reuters. The B20 is anticipated to commence shipping in the second quarter of 2025.
The company previously designed three chips, including the H20, to adhere to U.S. export regulations. It has lowered prices for the H20 amid sluggish sales to compete against domestic rival Huawei. However, recent reports indicate that sales of the H20 are on the rise, with projections of over one million units sold in China this year, valued at approximately $12 billion, despite ongoing U.S. trade restrictions. This figure is nearly double the expected sales of Huawei’s Ascend 910B chip.
Nevertheless, the H20 chips could face further restrictions under new U.S. trade policies. Analysts from Jefferies warned that during the upcoming annual review of semiconductor export controls in October, the H20 may be prohibited from sale to China. Possible measures could include a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
Moreover, there are discussions about extending export controls to chips sold to other regional countries like Malaysia, Indonesia, and Thailand, or even to overseas Chinese firms, although implementation of the latter could prove challenging.