As the United States explores stricter trade restrictions aimed at preventing advanced chip technology from being exported to China, the American semiconductor manufacturer Nvidia is reportedly developing a new version of its artificial intelligence chips in response.
According to reports by Reuters, Nvidia is creating a variant of its advanced Blackwell AI chips specifically for the Chinese market, working in collaboration with local distribution partner Inspur to introduce and sell the product, provisionally named the “B20.” This new chip is anticipated to begin shipping by the second quarter of 2025.
While Nvidia has declined to provide official comments on the matter, the company has previously introduced three chips that are designed to adhere to U.S. export regulations, including the H20 model. Nvidia has reportedly reduced prices on the H20 due to lackluster sales in competition with Chinese rival Huawei. However, sales of the H20 have shown signs of recovery, with expectations indicating that Nvidia will sell over one million of these chips in China this year, generating approximately $12 billion in revenue despite existing trade restrictions. This sales figure is nearly double the anticipated sales for Huawei’s Ascend 910B chip.
Concerns remain regarding the H20 chips as analysts from Jeffries have noted that they may be vulnerable under potential further U.S. trade regulations. A review of semiconductor export controls is scheduled for October, during which it is considered “highly likely” that sales of the H20 to China will be prohibited. This ban could be implemented through several routes, including a specific product ban, adjustments to computing power limits, or restrictions on memory capacity.
Furthermore, there is potential for the U.S. to extend export controls to chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or to overseas Chinese firms, although such actions would present more complex challenges for enforcement.