As the United States contemplates stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a U.S.-based chip manufacturer, is reportedly developing a version of its latest artificial intelligence chips to adhere to these potential regulations.
According to sources familiar with the situation, Nvidia is working on a model of its new Blackwell AI chips specifically for the Chinese market. The company is expected to collaborate with the local distributor, Inspur, to introduce and market a chip provisionally called the “B20” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has opted not to comment on these developments.
Nvidia has already designed three chips that meet U.S. export control requirements, one of which is the H20. The company recently reduced H20 prices in response to sluggish sales, competing with domestic rival Huawei. However, reports indicate that sales of the H20 are on the rise, with expectations of over one million units sold in China this year, translating to approximately $12 billion in revenue, despite U.S. trade barriers.
Jefferies analysts have pointed out that the H20 chips could face additional risks under forthcoming U.S. trade regulations. They noted that during the U.S. annual review of semiconductor export controls in October, it is very likely that the H20 will be prohibited from being sold to China. Potential bans could result from a “product-specific ban, lowering the computing power cap, and/or restricting memory capacity.”
Furthermore, analysts suggest that the U.S. may extend these export controls to chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or may even expand the restrictions to overseas Chinese companies, although the latter would be more challenging to enforce.