As the United States evaluates stricter trade measures to restrict advanced chip technology from being exported to China, Nvidia, a prominent chipmaker based in the U.S., is reportedly developing an alternative version of its latest artificial intelligence chips to adhere to these regulations.
According to reports, Nvidia is preparing to introduce a variant of its new Blackwell AI chips, specifically designed for the Chinese market. The company is collaborating with a local distributor, Inspur, to facilitate the launch and distribution of this chip, provisionally named the “B20,” in China.
Industry sources suggest that the B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has not provided any official comment regarding these developments.
Nvidia currently has three chip models that align with U.S. export controls, including the H20 chip, which has seen a price reduction in response to sluggish sales as it competes with offerings from the local Chinese competitor, Huawei. Nonetheless, reports indicate that H20 sales are on the rise, with projections suggesting that Nvidia could sell over one million H20 chips in China this year, amounting to approximately $12 billion, despite ongoing U.S. trade challenges. This figure could nearly double Huawei’s forecast for its Ascend 910B chip.
On the other hand, analysts from Jeffries have signaled that Nvidia’s H20 chips may face increased scrutiny under potential new U.S. trade regulations. As part of the annual review process of U.S. semiconductor export controls scheduled for October, they believe it is likely that the H20 could be prohibited from being sold to China. Such restrictions could manifest through various mechanisms, including a specific ban on the product, reductions in computing power thresholds, or limitations on memory capacity.
Furthermore, analysts suggest that the U.S. could also expand its export controls on semiconductors to other nations in the Southeast Asian region, such as Malaysia, Indonesia, and Thailand, or even target overseas Chinese firms, though implementing such measures would present greater challenges.