Nvidia, the U.S.-based semiconductor company, is reportedly developing a version of its advanced Blackwell AI chips tailored for compliance with potential new U.S. trade restrictions aimed at preventing the export of sophisticated chip technology to China. According to sources cited by Reuters, the chipmaker intends to collaborate with its local distribution partner, Inspur, to introduce the chip, which is preliminarily named the “B20,” in the Chinese market.
The B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on this development.
Nvidia already offers three chips designed to meet U.S. export regulations, including the H20, which the company has reduced prices for in response to weak sales as it competes with domestic rival Huawei. Despite initial challenges, H20 sales are reportedly on the rise, with expectations of over one million units sold in China this year, equating to approximately $12 billion in revenue, according to data from SemiAnalysis cited by the Financial Times. This volume of anticipated sales nearly doubles Huawei’s projections for its Ascend 910B chip.
However, Jefferies analysts have cautioned that Nvidia’s H20 chips may face further risks under new U.S. trade rules. They noted that during the annual review of U.S. semiconductor export controls in October, it is very likely that the H20 will face a sales ban in China. Such a ban could be implemented through several means, including a specific prohibition on the product, reductions in the computing power limit, or restrictions on memory capacity.
Additionally, there is potential for the U.S. to broaden its export controls on chips destined for other countries in the region, such as Malaysia, Indonesia, and Thailand, or to apply these regulations to overseas Chinese enterprises, although the latter would present more complexities for enforcement, according to analysts.