As the U.S. deliberates on implementing stricter trade restrictions aimed at preventing advanced chip technology from being supplied to China, Nvidia is reportedly developing a modified version of its new artificial intelligence chips to adhere to these regulations.
According to information from unnamed sources, Nvidia is designing a variant of its Blackwell AI chips specifically for the Chinese market and is teaming up with a local partner, Inspur, to distribute and market the chip, which is provisionally named the “B20.” It is anticipated that the B20 will begin shipping in the second quarter of 2025, although Nvidia has chosen not to provide any further comments on the matter.
Nvidia has already produced three chip variants designed to align with U.S. export controls, including the H20 chip, which the company has lowered prices for in response to sluggish sales in order to compete against domestic rival Huawei. Reports indicate that sales for the H20 have begun to increase, with projections suggesting that Nvidia could sell over one million units of the H20 in China this year, amounting to approximately $12 billion, despite the existing U.S. trade limitations. This forecast nearly doubles Huawei’s expected sales for its Ascend 910B chip.
However, analysts from Jefferies have warned that the H20 chips may face prohibitions under potential new U.S. trade regulations. As the annual review of U.S. semiconductor export controls approaches in October, analysts suggest it is “highly likely” that the H20 will be banned from sale to China. Such a ban could come through various means, including a specific product ban, a reduction in permissible computing power, or limitations on memory capacity.
Furthermore, the U.S. may consider extending its export controls on chips to additional countries in the region, including Malaysia, Indonesia, and Thailand, or potentially widen restrictions to overseas Chinese companies, though the latter option may prove more complex to implement, according to analysts.