As the United States contemplates stricter trade measures to restrict advanced chip technology from being exported to China, Nvidia, a leading American chipmaker, is reportedly developing a compliant version of its new artificial intelligence chips.
According to unnamed sources cited by Reuters, Nvidia is creating a variant of its Blackwell AI chips tailored for the Chinese market. The company is expected to collaborate with a local distribution partner, Inspur, to introduce and distribute this new chip, provisionally named the “B20,” in China.
The B20 is anticipated to commence shipments in the second quarter of 2025. Nvidia, however, has not provided any official comments regarding this matter.
The company currently offers three chip models designed to adhere to U.S. export regulations, including the H20 chip, for which Nvidia has reduced prices due to sluggish sales, in a bid to compete with local rival Huawei. Nevertheless, sales of the H20 are reportedly on the rise, with sources indicating that Nvidia is projected to sell over one million units of this chip in China this year, generating approximately $12 billion, despite existing U.S. trade restrictions. This sales forecast nearly doubles Huawei’s anticipated sales for its Ascend 910B chip.
Furthermore, analysts from Jefferies have noted that Nvidia’s H20 chips might face increased risks under new U.S. trade regulations. They suggest that during the U.S. annual review of semiconductor export controls in October, it is probable that the H20 could be prohibited from being sold to China. Potential avenues for this ban could include a specific product ban, tightening the computing power limit, or imposing restrictions on memory capacity.
There is also speculation that the U.S. could extend its export controls on chips to other nations in the region, such as Malaysia, Indonesia, and Thailand, or apply these controls to overseas Chinese companies; however, the latter would be more challenging to implement, as noted by analysts.