As the United States contemplates stricter trade regulations aimed at preventing advanced chip technology from reaching China, Nvidia, a prominent U.S.-based semiconductor manufacturer, is reportedly developing a version of its latest artificial intelligence chips designed to comply with these rules.
Nvidia is crafting a variant of its Blackwell AI chips specifically for the Chinese market, as reported by Reuters, citing unnamed sources familiar with the matter. The company plans to collaborate with local distributor Inspur to introduce and market the chip, provisionally named the “B20,” within China.
Sources indicate that the B20 is anticipated to begin shipments in the second quarter of 2025. Nvidia has not provided any official comment on this development.
The chipmaker has already rolled out three chips tailored to adhere to U.S. export regulations, which includes the H20. In an effort to bolster sales amid competitive pressure from domestic rival Huawei, Nvidia has reduced prices for the H20. Recent reports suggest that sales of the H20 are experiencing growth, with Nvidia projected to sell over one million units in China this year, totaling approximately $12 billion in value, despite ongoing trade limitations. This figure is nearly double Huawei’s projected sales for its Ascend 910B chip.
However, analysts from Jefferies warn that Nvidia’s H20 chips could face restrictions under forthcoming U.S. trade policies. With the annual review of U.S. semiconductor export controls scheduled for October, analysts suggest that it is “highly likely” the H20 will face a sales ban in China. Such a ban could be implemented in several ways, including a “product specific ban,” lowering the computing power threshold, or limiting memory capacity.
Furthermore, the U.S. may consider broadening export restrictions on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or could extend these controls to overseas Chinese companies, though such actions may present implementation challenges.