As the United States considers imposing stricter trade restrictions to prevent advanced chip technology from reaching China, the U.S.-based semiconductor company Nvidia is reportedly developing a version of its latest artificial intelligence chips to comply with these regulations.
According to reports, Nvidia is creating a specific variant of its new Blackwell AI chips aimed at the Chinese market. The company is expected to collaborate with a local distribution partner, Inspur, to launch and sell this chip, which has been tentatively named the “B20,” in China.
Sources indicate that shipments of the B20 are scheduled to begin in the second quarter of 2025. Nvidia has chosen not to provide any official comment on the matter.
Nvidia has already designed three chips to align with U.S. export controls, including the H20, which the company reduced prices for due to sluggish sales and competition from domestic rival Huawei. However, sales of the H20 are reportedly increasing, with projections suggesting Nvidia could sell over one million of these chips in China this year, totaling around $12 billion, despite existing trade restrictions.
In contrast, these anticipated sales from Nvidia are projected to be nearly double Huawei’s expectations for its Ascend 910B chip, according to industry analysis data.
However, Jefferies analysts have indicated that Nvidia’s H20 chips could be impacted by further U.S. trade regulations. The analysts noted that during the U.S. annual review of semiconductor export controls in October, it is likely the H20 will face a ban on sales to China. This ban could take various forms, including a specific product ban, a reduction in the computing power cap, or restrictions on memory capacity.
Additionally, the U.S. government might expand export controls on chips sold to neighboring countries such as Malaysia, Indonesia, and Thailand, or apply these controls to overseas Chinese firms; however, implementing such measures may present challenges, according to analysts.