As the United States considers stronger trade restrictions to prevent advanced chip technology from reaching China, Nvidia, a U.S.-based chip manufacturer, is reportedly developing a modified version of its artificial intelligence chips to adhere to these regulations.
According to reports, Nvidia is preparing to create a version of its new Blackwell AI chips specifically for the Chinese market, working in partnership with the local distributor, Inspur. This new chip, tentatively named the “B20,” is expected to begin shipments in the second quarter of 2025.
Nvidia has already designed three chips to comply with U.S. export controls, including the H20, which it recently reduced prices for amid declining sales to better compete with products from Chinese rival Huawei. Despite initial challenges, sales of the H20 have seen growth, with projections indicating that Nvidia will sell over one million units of this chip in China this year, totaling approximately $12 billion, according to data from SemiAnalysis.
However, Nvidia’s H20 chips could face challenges under potential new U.S. trade regulations. Analysts from Jefferies noted that during the annual review of semiconductor export controls, it is highly likely that the H20 may face bans on sales to China. Such bans could be enacted in several ways, including specific product bans, lowering computing power limits, or imposing caps on memory capacity.
Additionally, there are considerations that export controls might be expanded to chips sold to other Southeast Asian countries, such as Malaysia, Indonesia, and Thailand, or to overseas Chinese firms, although the latter would pose greater implementation challenges.