As the U.S. evaluates stricter trade restrictions aimed at preventing advanced chip technology from being exported to China, Nvidia, a prominent U.S.-based chipmaker, is reportedly developing a variant of its new artificial intelligence chips to adhere to these regulations.
According to reports from Reuters, Nvidia is producing a version of its Blackwell AI chips for the Chinese market, collaborating with local distributor Inspur for the launch and sale of this chip, provisionally named the “B20.” Sources suggest that the B20 is slated to begin shipping in the second quarter of 2025. Nvidia has not provided any official comments regarding this development.
The company currently has three chips tailored to comply with U.S. export restrictions, including the H20, which it has reduced prices for due to weak sales in order to remain competitive against domestic rival Huawei. However, reports indicate that sales of the H20 are now increasing, with expectations that Nvidia will sell over one million of these chips in China this year, valued at approximately $12 billion, despite prevailing U.S. trade limitations. This figure is nearly double the anticipated sales for Huawei’s Ascend 910B chip.
Additionally, analysts from Jefferies warned that Nvidia’s H20 chips may face a threat under potential new U.S. trade regulations. They indicated that during the upcoming annual review of semiconductor export controls in October, it is likely that the H20 could be prohibited from being sold to China. Potential methods for a ban could include a specific prohibition on the product, a reduction in allowed computing power, or limitations on memory capacity.
There are also considerations that the U.S. may expand export controls on chips marketed to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even apply these restrictions to overseas Chinese firms, though implementing such measures would be more complex, according to the analysts.