As the United States evaluates stricter trade regulations aimed at preventing advanced chip technology from being supplied to China, U.S. chip manufacturer Nvidia is reportedly developing a new version of its artificial intelligence chips to adhere to these potential regulations.
Nvidia is creating a version of its Blackwell AI chips specifically for the Chinese market, according to a report by Reuters that cites anonymous sources familiar with the situation. The company plans to collaborate with a local partner, Inspur, to introduce and market the chip, which has been tentatively named the “B20,” in China.
The B20 is projected to begin shipping in the second quarter of 2025. Nvidia has opted not to provide a comment on these developments.
Currently, Nvidia has three chips designed to meet U.S. export controls, including the H20, for which the company recently reduced prices to enhance competitiveness against domestically produced chips from Huawei. Sales of the H20 chip have begun to increase, with projections indicating that Nvidia could sell over one million units in China this year, generating approximately $12 billion in revenue, as reported by the Financial Times and backed by SemiAnalysis data. This estimated figure is nearly double Huawei’s anticipated sales for its Ascend 910B chip.
However, the H20 chips may face challenges if the U.S. government imposes more stringent trade measures, according to analysts from Jefferies. During the annual review of semiconductor export controls in October, there is a “high likelihood” that the H20 chip will be prohibited from being sold to China, based on Jefferies’ analysis. Potential methods for implementing this ban could involve specific product prohibitions, adjustments to computing power limits, or restrictions on memory capacity.
Furthermore, U.S. authorities might expand export controls on chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or extend these controls to Chinese companies operating overseas, although the latter would be more challenging to enforce, according to analysts.