As the U.S. evaluates stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a leading American chip manufacturer, is reportedly developing a version of its latest artificial intelligence chips to adhere to these regulations.
Nvidia is working on a model of its upcoming Blackwell AI chips tailored for the Chinese market, according to sources cited by Reuters. The company plans to collaborate with a local distributor, Inspur, to introduce and market the chip, provisionally named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025, a source informed Reuters. Nvidia has opted not to comment on the matter.
The company has already designed three chips that align with U.S. export controls, including the H20, which Nvidia has reduced prices on due to sluggish sales, aiming to compete with local rival Huawei. However, reports indicate that sales of the H20 are on the rise, with expectations to surpass one million units sold in China this year, potentially generating around $12 billion in revenue, despite ongoing U.S. trade restrictions. This projection is nearly double that of Huawei’s anticipated sales of its Ascend 910B chip.
Simultaneously, Nvidia’s H20 chips might face challenges under potential future U.S. trade regulations, according to Jefferies analysts. In their annual review of semiconductor export controls, scheduled for October, they suggest that it is very likely the H20 could be prohibited from being sold to China. This ban might be enacted in various ways, including a “product-specific ban,” lowering the computing power limit, or imposing restrictions on memory capacity.
Furthermore, the U.S. might broaden its export restrictions on chips supplied to other countries in the region, such as Malaysia, Indonesia, and Thailand, or apply these controls to overseas Chinese firms, although the latter option would be more complex to enforce, analysts note.