As the U.S. evaluates stricter trade measures to hinder the transfer of advanced chip technology to 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.
According to reports from Reuters, Nvidia is creating a variant of its Blackwell AI chips for the Chinese market, in collaboration with a local distribution partner, Inspur. This new chip, tentatively named the “B20,” is projected to begin shipping in the second quarter of 2025. Nvidia has not provided any official comment regarding this development.
The company has already designed three chips to align with U.S. export controls, one of which is the H20. Nvidia has reduced prices for the H20 due to sluggish sales in order to compete with domestic rival Huawei. However, there has been a resurgence in H20 sales, with expectations that Nvidia will sell over one million units in China this year, potentially generating about $12 billion in revenue despite existing U.S. trade restrictions. This projection is nearly double Huawei’s anticipated sales of its Ascend 910B chip.
Additionally, analysts from Jefferies have noted that Nvidia’s H20 chips may face challenges under future U.S. trade regulations. In their annual review of semiconductor export controls scheduled for October, it is “highly likely” that the H20 will be prohibited for sale to China, as suggested in analysts’ notes. Potential restrictions could be implemented through a product-specific ban or by adjusting the permissible computing power and memory capacity.
Furthermore, the U.S. may also consider expanding export control measures for chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or apply these controls to overseas Chinese companies, although this would present more complexities in enforcement, according to analysts.