Nvidia is reportedly developing a version of its new Blackwell AI chips tailored for the Chinese market as the U.S. government considers stricter trade restrictions aimed at preventing advanced chip technology from being exported to China. According to unnamed sources, the company is collaborating with local partner Inspur to introduce the chip, known tentatively as the “B20,” which is expected to begin shipping in the second quarter of 2025.
Despite the tightening trade environment, Nvidia has already produced three chips designed to meet U.S. export regulations, including the H20, which has gained traction in sales after a price cut aimed at competing with Huawei’s offerings. Reports suggest that Nvidia anticipates selling over one million H20 chips in China this year, generating approximately $12 billion in revenue, which is significantly higher than Huawei’s sales projections for its Ascend 910B chip.
However, analysts from Jefferies have indicated that the H20 chip could face bans under upcoming U.S. trade regulations during the annual review of semiconductor export controls in October. Potential restrictions could include a specific product ban, lower caps on computing power, or limitations on memory capacity. Furthermore, the U.S. might also broaden export controls to cover chips sold to other Southeast Asian countries like Malaysia, Indonesia, and Thailand, as well as overseas Chinese companies, though the latter would be more challenging to enforce.