As the United States contemplates more stringent trade restrictions to stop advanced chip technology from reaching China, Nvidia, a U.S.-based chip manufacturer, is reportedly developing a modified version of its new artificial intelligence chips to adhere to these regulations.
According to Reuters, Nvidia is creating a version of its Blackwell AI chips specifically for the Chinese market. The company plans to partner with local distributor Inspur to launch and distribute the chip, provisionally named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025, as reported by a source. Nvidia has chosen not to comment on the matter.
Nvidia has already introduced three chips designed to meet U.S. export controls, including the H20, which saw price reductions due to sluggish sales as it competes with chips from the domestic competitor Huawei. However, reports indicate that sales of the H20 are currently on the rise. Analysts project that Nvidia will sell over one million H20 chips in China this year, generating approximately $12 billion in revenue, despite ongoing U.S. trade restrictions. This expected figure is nearly double Huawei’s projected sales of its Ascend 910B chip.
Conversely, the H20 chips may face new risks should U.S. trade regulations tighten. Analysts from Jefferies indicated that during the upcoming annual review of U.S. semiconductor export controls in October, it is likely that the H20 could be banned from sale to China. Possible methods for enacting this ban include a specific product prohibition, a reduction in the computing power limit, or restrictions on memory capacity.
Additionally, the U.S. might broaden export controls to chips sold to neighboring countries such as Malaysia, Indonesia, and Thailand, or even extend these controls to overseas Chinese companies, although the latter is considered to be more challenging to implement.