As the United States evaluates stricter trade restrictions to prevent advanced chip technologies from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a compliant version of its new artificial intelligence chips.
According to sources familiar with the situation, Nvidia is creating a version of its Blackwell AI chips tailored for the Chinese market. The company plans to collaborate with local partner Inspur to introduce and market the chip, temporarily named the “B20,” within China.
Shipping for the B20 is anticipated to begin in the second quarter of 2025, as per reports. Nvidia has not provided any comments on this development.
The company currently has three chip models designed to meet U.S. export regulations, including the H20, which Nvidia has reduced prices for due to lackluster sales as it competes with chips from Chinese rival Huawei. However, reports indicate that sales of the H20 are now increasing. Nvidia is projected to sell over one million H20 chips in China this year, amounting to approximately $12 billion, despite the ongoing U.S. trade limitations. This figure is nearly double the sales forecast for Huawei’s Ascend 910B chip.
In the meantime, Jefferies analysts have warned that Nvidia’s H20 chips could face risks from impending U.S. trade policies. In its annual review of semiconductor export laws scheduled for October, there’s a significant possibility that the H20 will face sales prohibitions in China. The potential ban could manifest in several forms: a specific product ban, stricter computing power limits, and/or restrictions on memory capacity.
Additionally, there is speculation that the U.S. may broaden its export controls to include chips sold to other nations within the region, such as Malaysia, Indonesia, and Thailand, or extend restrictions to Chinese companies operating overseas, though implementing such measures could prove challenging.