The U.S. is considering stricter trade measures to prevent advanced chip technology from reaching China, prompting Nvidia, a U.S.-based chip manufacturer, to develop a new version of its artificial intelligence chips to meet these restrictions.
Nvidia is reportedly creating a variant of its Blackwell AI chips tailored for the Chinese market, working alongside local distribution partner Inspur to introduce and sell the chip, tentatively named the “B20,” as reported by Reuters.
The B20 is projected to begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on the situation.
Currently, Nvidia has three chips designed to comply with U.S. export regulations, including the H20, for which the company has lowered prices due to sluggish sales, trying to compete with local rival Huawei. However, reports indicate that sales of the H20 are increasing, with expectations that Nvidia will sell over one million units in China this year, totaling around $12 billion, despite the ongoing trade restrictions.
Analysts from Jefferies have suggested that Nvidia’s H20 chips may face further risks from U.S. trade rules. During its annual review of semiconductor export controls scheduled for October, it is anticipated that the H20 could be banned from sale in China. This ban could be implemented in several ways, such as a specific product ban, lowering the computing power limit, or restricting memory capacity.
Moreover, the U.S. might extend these export controls to chips sold to other regional countries like Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although such measures would present more challenges for enforcement.