As the U.S. evaluates stricter trade measures to hinder the transfer of advanced chip technology to China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a new version of its artificial intelligence chips to meet these regulations.
Nvidia is reportedly designing its new Blackwell AI chips for the Chinese market, with plans to collaborate with local distribution partner Inspur to launch and market a chip tentatively named the “B20” in China. According to sources familiar with the situation, shipments of the B20 are anticipated to begin in the second quarter of 2025, although Nvidia has not provided any comments regarding this development.
The company currently has three chips specifically tailored to adhere to U.S. export controls, including the H20, which it has discounted due to sluggish sales in order to compete against locally produced chips from rival Huawei. However, recent reports indicate that sales of the H20 are on the rise. Nvidia is projected to sell over one million H20 chips in China this year, amounting to approximately $12 billion, despite existing trade restrictions. These expected sales nearly double Huawei’s projections for its Ascend 910B chip, as noted by data from SemiAnalysis.
In light of potential new U.S. trade regulations, analysts from Jeffries have expressed concerns regarding the future of Nvidia’s H20 chips. They predict that during the upcoming annual review of U.S. semiconductor export controls in October, it is likely that the sale of H20 chips to China will be prohibited. This ban could manifest in various forms, such as a specific product ban, a decrease in the computing power limit, or restrictions on memory capacity.
Furthermore, the U.S. might consider expanding its export controls on chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or could extend these regulations to overseas Chinese firms, although the latter would be more complex to enforce, analysts suggest.