As the United States considers implementing stricter trade restrictions to prevent the transfer of advanced chip technology to China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips that aligns with these regulations.
According to reports from unnamed sources, Nvidia is creating a model of its Blackwell AI chips specifically for the Chinese market. The company plans to collaborate with a local distribution partner, Inspur, to introduce and market this chip, tentatively named the “B20,” in China.
Expected to begin shipping in the second quarter of 2025, the B20 aims to mitigate potential restrictions. While Nvidia did not provide comments on this development, it has other chips designed to comply with existing U.S. export controls, including the H20. Nvidia has recently reduced prices for the H20 due to sluggish sales, in an attempt to compete with chips from China’s Huawei. However, sales of the H20 are reportedly on the rise, with expectations to exceed one million units sold in China this year, worth approximately $12 billion, despite ongoing U.S. trade limitations.
Jefferies analysts indicate that the H20 chips may face risks from additional U.S. trade regulations. They predict that during the upcoming annual review of semiconductor export controls in October, there is a significant likelihood that the H20 could be prohibited from sale to China. This ban could be enacted through various methods, such as a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
Moreover, the U.S. might also widen its export controls on chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or could extend these restrictions to overseas Chinese firms, although implementing such measures may prove more complex.