As the United States weighs the implementation of stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a new version of its artificial intelligence chips to align with these regulations.
According to Reuters, Nvidia is creating a variant of its Blackwell AI chips specifically for the Chinese market, collaborating with a local distributor, Inspur. This new chip, provisionally named the “B20,” is anticipated to begin shipping in the second quarter of 2025.
While Nvidia has refrained from making any official comments on the matter, sources indicate that the company has already designed three chips, including the H20, to comply with U.S. export controls. In the face of lackluster sales, Nvidia reduced the prices of the H20 to better compete with domestic rival Huawei. However, reports suggest that sales for the H20 are on the rise, with projections indicating the sale of over one million units in China this year, amounting to approximately $12 billion, despite ongoing trade restrictions.
Analysts note that Nvidia’s H20 chips could be facing scrutiny amid potential new U.S. trade regulations. During the annual review of U.S. semiconductor export controls scheduled for October, it is considered highly probable that the H20 could be prohibited for sale to China. This restriction might come in various forms, such as a product-specific ban or limitations on computing power and memory capacity.
In addition to potential changes affecting China, the U.S. may also look to expand its export controls on semiconductor products destined for other countries in the region, including Malaysia, Indonesia, and Thailand, or even extend these measures to Chinese companies operating abroad, although this latter approach may prove more complex to implement.