As the United States evaluates stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a prominent U.S. chipmaker, is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
According to sources cited by Reuters, Nvidia is creating a variant of its Blackwell AI chips specifically for the Chinese market, in collaboration with a local distributor, Inspur. This new chip, tentatively named the “B20,” is expected to begin shipping in the second quarter of 2025.
Nvidia has three chips that are designed to meet U.S. export control standards, including the H20, which the company has reduced prices for due to lackluster sales to better compete with domestic counterpart Huawei. However, reports indicate that sales of the H20 are on the rise, with Nvidia anticipated to sell over one million H20 chips in China this year, valued at approximately $12 billion, despite ongoing U.S. trade restrictions. This projected sales figure is nearly double Huawei’s expected sales for its Ascend 910B chip.
Nevertheless, analysts from Jefferies have speculated that Nvidia’s H20 chips may be jeopardized by potential future U.S. trade rules. In their annual review of semiconductor export controls scheduled for October, there is a strong likelihood that the sales of the H20 to China will be prohibited, according to the analysts. Such a ban could manifest in various forms, including a product-specific restriction, a reduction in computing power limits, or a cap on memory capacity.
Additionally, there is the possibility that the U.S. may broaden its export restrictions on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or extend these controls to overseas Chinese companies, though the latter option may present greater implementation challenges.