As the U.S. considers implementing stricter trade restrictions to stop advanced chip technology from reaching China, Nvidia, a U.S.-based chipmaker, is reportedly developing a version of its latest artificial intelligence chips that align with the new regulations.
Nvidia is said to be working on a variation of its Blackwell AI chips for the Chinese market, according to reports from Reuters citing unnamed sources. The company is expected to collaborate with local distribution partner Inspur to launch and sell the chip, provisionally named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has opted not to comment on the situation.
The chipmaker has already designed three chips that adhere to U.S. export controls, including the H20, which saw a price reduction to bolster weak sales against domestic competitor Huawei. Nonetheless, sales of the H20 are reportedly on the rise, with expectations to surpass one million units in China this year, amounting to roughly $12 billion, despite ongoing U.S. trade restrictions.
According to the Financial Times, Nvidia’s anticipated sales are nearly double the projections for Huawei’s Ascend 910B chip. However, Jefferies analysts have warned that Nvidia’s H20 chips could face regulatory challenges under new U.S. trade rules. As the U.S. prepares for its annual review of semiconductor export controls in October, there is a “high likelihood” that the H20 may be prohibited from being sold to China, as stated by the analysts.
This potential ban could be executed in various ways, including a “product specific ban,” lowering the computing power limit, or implementing restrictions on memory capacity. Additionally, the U.S. might broaden export controls related to chips sold to neighboring countries such as Malaysia, Indonesia, and Thailand, or extend these controls to Chinese enterprises operating overseas, although this latter action would be complex to enforce, according to industry experts.