As the United States contemplates stricter trade restrictions to prevent the transfer of advanced chip technology to China, Nvidia, a prominent U.S. chip manufacturer, is reportedly developing a version of its latest artificial intelligence chips to align with these regulations.
Sources revealed that Nvidia is creating a variant of its new Blackwell AI chips specifically for the Chinese market. The chip, provisionally named the “B20,” will be marketed in collaboration with the local distributor, Inspur. Shipments for the B20 are anticipated to begin in the second quarter of 2025.
Nvidia did not provide any comments on these developments. The company has already designed three chips that adhere to U.S. export regulations, including the H20, which it recently reduced prices for due to lackluster sales, in an effort to compete against domestic rival Huawei. Sources indicate that sales of the H20 are currently on the rise, with Nvidia projected to sell over one million units in China this year, generating approximately $12 billion, despite the existing U.S. trade limitations. This estimate is nearly double Huawei’s sales projections for its Ascend 910B chip.
However, analysts from Jeffries have cautioned that Nvidia’s H20 chips could face additional risks under forthcoming U.S. trade policies. A review of U.S. semiconductor export controls is expected in October, and analysts suggest that there is a strong likelihood the H20 will be prohibited from sale to China. Potential avenues for such a ban could include a product-specific restriction, a reduction in the computing power limit, or a cap on memory capacity.
Furthermore, the U.S. might extend its export controls on chips to other countries in the region, such as Malaysia, Indonesia, and Thailand, or to overseas companies linked to China, although implementing such measures could prove more complex.