As the United States deliberates on imposing stricter trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a prominent U.S.-based semiconductor manufacturer, is reportedly developing a modified version of its latest artificial intelligence chips to adhere to these regulations.
According to reports from Reuters, Nvidia is designing a variant of its new Blackwell AI chips specifically for the Chinese market. The company is expected to collaborate with a local distributor, Inspur, to introduce and market the chip, which is tentatively named the “B20.” It is anticipated that the B20 will begin shipping in the second quarter of 2025.
While Nvidia has chosen not to comment on these developments, the chipmaker currently offers three models designed to meet U.S. export control guidelines. Among these is the H20 chip, which Nvidia has recently reduced prices for in response to sluggish sales driven by competition from domestic rival Huawei. However, reports suggest that sales of the H20 are now on the rise, with expectations of over one million units sold in China this year, generating approximately $12 billion in revenue, despite the ongoing U.S. trade restrictions. This projected performance is nearly double that of Huawei’s anticipated sales of its Ascend 910B chip.
Analysts from Jefferies have indicated that Nvidia’s H20 chips may face increased scrutiny under forthcoming U.S. trade regulations. They noted that during the U.S. annual review of semiconductor export controls scheduled for October, there is a strong likelihood that the H20 will be prohibited for sale to China. Potential paths for this restriction could include a targeted product ban, a reduction in the allowed computing power, and limitations on memory capacity.
Additionally, the U.S. may broaden its export controls to encompass chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or potentially extend these controls to Chinese companies operating abroad. However, implementing such measures may prove to be more challenging, according to analysts.