As the U.S. deliberates on stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a major American chip manufacturer, is reportedly developing a version of its latest artificial intelligence chips that aligns with these new regulations.
Nvidia is creating a model of its Blackwell AI chips specifically for the Chinese market, according to reports from unnamed sources. The company plans to collaborate with a local distributor, Inspur, to introduce and sell the chip, which is provisionally named the “B20,” in China.
The B20 is projected to begin shipments in the second quarter of 2025, as noted by a source. Nvidia has chosen not to comment on the matter.
The company has three chip models designed to comply with U.S. export restrictions, including the H20, which it recently reduced prices on in response to weak sales in competition with Huawei’s domestic products. However, sales of the H20 chip are reportedly on the rise, with Nvidia expected to ship over one million units in China this year, with an estimated value of around $12 billion, despite existing U.S. trade barriers. This projection nearly doubles Huawei’s anticipated sales for its Ascend 910B chip.
Analysts from Jefferies have indicated that Nvidia’s H20 chips could face challenges due to potential new U.S. trade regulations. They anticipate that during the U.S. annual review of semiconductor export controls in October, the H20 may be prohibited for sale to China. Such a ban could be implemented through various means including a targeted ban on the product, a reduction in computing power limitations, or restrictions on memory capacity.
Additionally, the U.S. may consider extending export controls on chips to other countries in the region, like Malaysia, Indonesia, and Thailand, or potentially expanding restrictions to overseas Chinese companies, although this would present a greater challenge, according to analysts.