As the United States weighs stricter trade restrictions to block advanced chip technology from reaching China, Nvidia, a U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips that will adhere to these regulations.
Nvidia is aiming to create a model of its Blackwell AI chips for the Chinese market, as reported by Reuters, which cites anonymous sources familiar with the situation. The company plans to collaborate with a local distribution partner, Inspur, to introduce and market the chip, provisionally named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025, according to one source. Nvidia has refrained from commenting on the report.
The company has already designed three chips specifically to meet U.S. export regulations, including the H20 chip, which Nvidia has reduced prices for due to sluggish sales in order to compete with products from its domestic rival, Huawei. Recent reports suggest that sales of the H20 chip are on the rise. Nvidia is projected to sell over one million H20 chips in China this year, generating approximately $12 billion in revenue, despite ongoing U.S. trade barriers. This expected sales figure is nearly double Huawei’s anticipated sales for its Ascend 910B chip.
However, analysts from Jefferies have indicated that the H20 chips may face increased risks due to potential new U.S. trade regulations. In light of the annual review of semiconductor export controls scheduled for October, they suggest that it is “highly likely” the H20 could be prohibited from entering the Chinese market. Such a ban could manifest in three ways: a product-specific prohibition, a reduction in the computing power limit, or a restriction on memory capacity.
Furthermore, the U.S. might consider expanding its export controls on chips distributed to other regional countries, such as Malaysia, Indonesia, and Thailand, or implementing broader controls on overseas Chinese firms, although this latter approach may be more challenging to execute, according to analysts.