As the United States explores the possibility of imposing stricter trade restrictions to prevent advanced semiconductor technology from reaching China, Nvidia, a prominent American chipmaker, is reportedly developing a modified version of its new artificial intelligence chips to meet these impending regulations.
According to sources familiar with the situation, Nvidia is creating a variant of its Blackwell AI chips specifically for the Chinese market. This chip, provisionally named the “B20,” will be launched and distributed in collaboration with a local partner, Inspur. The B20 is anticipated to begin shipping in the second quarter of 2025.
Currently, Nvidia has three chip models designed to comply with U.S. export regulations, including the H20 chip, for which the company has reduced prices to compete against domestic rival Huawei amid lackluster sales. However, reports indicate that H20 sales are on the rise, with projections estimating over one million units sold in China this year, approximately valued at $12 billion. Notably, this figure nearly doubles Huawei’s expectations for its own chip offerings.
Despite these sales successes, market analysts warn that the H20 chip could be vulnerable to further U.S. restrictions. The annual review of semiconductor export controls set to take place in October might result in a ban on the H20 for sale to China. Analysts highlight potential methods for such a ban, including specifying products, modifying computing power caps, or imposing limits on memory capacity.
Additionally, there is speculation that the United States may tighten export controls not only on chips destined for China but also for other countries in the region like Malaysia, Indonesia, and Thailand. However, extending these controls to overseas Chinese entities may prove to be more challenging.
This situation highlights the ongoing tension between technological development and international trade policies. While the restrictions aim to protect U.S. interests, they also push companies like Nvidia to innovate and adapt to new market conditions. The ability of Nvidia to successfully launch the B20 in China could signify a flexible approach to complying with trade regulations while still engaging in one of the world’s largest tech markets.
In summary, Nvidia’s proactive measures in response to shifting trade policies denote resilience and adaptability in an evolving global market, potentially paving the way for continued growth in the AI sector despite regulatory challenges.