As the U.S. contemplates more stringent trade measures to stop advanced chip technology from reaching China, Nvidia, a prominent American chip manufacturer, is reportedly developing a modified version of its latest artificial intelligence chips to adhere to these regulations.
Nvidia is reportedly creating a variant of its new Blackwell AI chips specifically for China, as reported by Reuters, citing sources familiar with the situation. The company plans to collaborate with a local distributor, Inspur, to introduce and sell the chip, provisionally named the “B20,” in the Chinese market.
The B20 is projected to begin shipping in the second quarter of 2025, as indicated by a source. Nvidia has not provided any official comment on this matter.
The chipmaker currently has three chips redesigned to meet U.S. export regulations, including the H20, which Nvidia has discounted due to weak sales to compete with products from the Chinese firm Huawei. However, H20 sales are reportedly on the rise. Forecasts suggest Nvidia could sell over a million H20 chips in China this year, valued at approximately $12 billion, despite ongoing U.S. trade restrictions, according to the Financial Times and data from SemiAnalysis. This anticipated sales figure nearly doubles Huawei’s expectations for its Ascend 910B chip.
In addition, analysts from Jefferies warn that Nvidia’s H20 chips might face challenges due to potential new U.S. trade regulations. With the annual review of U.S. semiconductor export controls set for October, the analysts noted that it is “highly likely” the H20 chip could be banned from being sold in China. This potential ban could manifest through various means, including specific product prohibitions, reductions in computing power limits, or constraints on memory capacity.
Moreover, the U.S. may also expand export restrictions on chips exported to other countries in the region, such as Malaysia, Indonesia, and Thailand, or impose similar controls on overseas Chinese companies, although this latter action would present more implementation challenges, according to analysts.