As the U.S. evaluates stricter trade barriers to stop advanced chip technology from being delivered to China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly designing a new version of its artificial intelligence chips to adhere to these regulations.
According to unnamed sources cited by Reuters, Nvidia is developing a variant of its Blackwell AI chips for the Chinese market, called the “B20.” The company is said to be collaborating with a local distributor, Inspur, for the chip’s launch and sales in China.
The B20 is projected to begin shipping in the second quarter of 2025, as reported by a source to Reuters. Nvidia has not provided any comments on this development.
Nvidia has already created three chip models that align with U.S. export regulations, including the H20, which the company reduced prices on due to sluggish sales in order to compete with chips from domestic rival Huawei. However, sources indicate that sales of the H20 are beginning to rise. Nvidia is anticipated to sell over one million H20 chips in China this year, generating approximately $12 billion, despite existing U.S. trade limitations. This figure nearly doubles Huawei’s projected sales for its Ascend 910B chip, based on data from SemiAnalysis.
On the other hand, Nvidia’s H20 chips may face new risks due to upcoming U.S. trade guidelines, according to analysts from Jefferies. The annual review of U.S. semiconductor export controls in October may result in a ban on the H20 for sale to China, the analysts suggest. Such a ban could manifest in various forms: a specific product restriction, lower computing power thresholds, or capping memory capacity.
Furthermore, the U.S. may widen its export restrictions to include chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or extend these controls to overseas Chinese companies, although this latter option could pose implementation challenges, according to the analysts.