As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, the U.S.-based semiconductor manufacturer, is reportedly developing a version of its new artificial intelligence chips that aligns with these regulations.
According to reports from Reuters, Nvidia is preparing to launch the Blackwell AI chip, tentatively named the “B20,” specifically for the Chinese market. The company is expected to collaborate with local distributor Inspur for the chip’s launch and sales in China.
Sources suggest that shipping of the B20 chip could begin in the second quarter of 2025. Nvidia has not yet provided any official comments on this development.
Nvidia has already introduced three chips designed to adhere to U.S. export controls, including the H20, which the company has reduced prices on due to lackluster sales in order to compete with domestic rival Huawei. Despite previous challenges, sales of the H20 are reportedly increasing, with projections indicating that Nvidia may sell over one million H20 chips in China this year, valued at approximately $12 billion, despite ongoing U.S. trade restrictions.
Analysts from Jefferies have expressed concern that Nvidia’s H20 chips could soon face further risks under new U.S. trade regulations. They indicated that during the annual review of semiconductor export controls scheduled for October, it is highly probable that the H20 will be prohibited for sale to China. This prohibition could be implemented through various methods, including a product-specific ban or adjustments to computing power or memory capacities.
There is also the possibility of extending these export controls to chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although the latter would pose more challenges for enforcement, according to analysts.