As the United States evaluates more stringent trade regulations aimed at restricting advanced chip technologies from reaching China, the American chip manufacturer Nvidia is reportedly developing a compliant version of its new artificial intelligence chips.
According to reports, Nvidia is creating a variant of its Blackwell AI chips specifically for the Chinese market, in partnership with local distributor Inspur. This new chip is tentatively named the “B20” and is expected to begin shipping in the second quarter of 2025.
Nvidia has three chips that are designed to adhere to U.S. export controls, including the H20, which the company has recently discounted due to lackluster sales in a competitive landscape dominated by local rival Huawei. Despite initial challenges, sales of the H20 are reportedly on the rise, with estimates suggesting that Nvidia could sell over one million units in China this year, amounting to approximately $12 billion, according to data from SemiAnalysis cited by the Financial Times. This projection significantly surpasses Huawei’s anticipated sales of its Ascend 910B chip.
However, analysts from Jefferies have raised concerns that Nvidia’s H20 chips could face heightened risks under upcoming U.S. trade regulations. As the annual review of semiconductor export controls is scheduled for October, there is a strong possibility that the H20 may be prohibited from being sold to China. Potential avenues for restriction could include a specific ban on the product, a reduction in permissible computing power, or limitations on memory capacity.
Additionally, U.S. authorities may consider extending semiconductor export controls to other countries in the region, such as Malaysia, Indonesia, and Thailand, or to Chinese companies operating overseas, though implementing such measures could prove challenging.