As the U.S. contemplates stricter trade measures to prevent advanced chip technology from being delivered to China, Nvidia, a leading American chipmaker, is reportedly developing a version of its new artificial intelligence chips to align with these regulations.
According to sources familiar with the situation, Nvidia is creating a Chinese-specific iteration of its Blackwell AI chips. This version, tentatively named the “B20,” will be launched in collaboration with a local distributor, Inspur. It is projected to begin shipping in the second quarter of 2025.
Nvidia has already addressed U.S. export controls with three designated chips, including the H20, for which it reduced prices due to lackluster sales in order to compete with products from Huawei. However, reports indicate that H20 sales are now on the rise, with Nvidia forecasted to sell over one million units in China this year, amounting to approximately $12 billion, despite existing trade barriers. This expected sales figure is nearly double Huawei’s anticipated sales for its Ascend 910B chip.
However, the H20 chips could face challenges if further U.S. trade restrictions are implemented. Analysts from Jefferies suggest that a review of semiconductor export laws in October may lead to a ban on H20 sales to China through various methods, such as imposing product-specific bans, lowering computing power limits, or capping memory capacity.
Additionally, there are indications that the U.S. might broaden its export restrictions to cover chips sold to neighboring countries such as Malaysia, Indonesia, and Thailand or even extend controls to foreign Chinese firms, though the latter may be more complex to enforce.