As the United States evaluates stricter trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a leading U.S. chipmaker, is reportedly developing a modified version of its new artificial intelligence chips to align with these regulations.
According to a report from Reuters, Nvidia is creating an adaptation of its Blackwell AI chips specifically for the Chinese market, partnering with local distributor Inspur to launch the chip, which is tentatively named the “B20.” Sources suggest that the B20 is anticipated to begin shipping by the second quarter of 2025, although Nvidia has not officially commented on this development.
Nvidia currently has three chip models designed to adhere to U.S. export restrictions, including the H20, which the company recently reduced prices on to enhance competitiveness against Huawei’s offerings amidst lackluster sales. Nonetheless, reports indicate that H20 sales are on the rise, with projections suggesting Nvidia could sell over one million H20 chips in China this year, valued around $12 billion, despite existing trade restrictions. This figure nearly doubles Huawei’s sales predictions for its Ascend 910B chip.
However, Jefferies analysts have raised concerns that Nvidia’s H20 chips could face additional risks under upcoming U.S. trade regulations. In light of the U.S.’s annual review of semiconductor export controls scheduled for October, analysts have warned that it is likely the H20 will be prohibited from sales to China. This potential ban could manifest through a product-specific restriction, a reduction in computing power limits, or a cap on memory capacity.
Furthermore, there is speculation that the U.S. might extend its export controls on chips to other nations in the region, such as Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although implementing such measures could be more complex.