As the U.S. evaluates stricter trade measures to limit advanced chip technology from reaching China, Nvidia, a leading U.S.-based chip manufacturer, is reportedly developing a new version of its artificial intelligence chips to align with these regulations.
According to sources cited by Reuters, Nvidia is working on a variant of its Blackwell AI chips tailored for the Chinese market. The company is set to collaborate with Inspur, a local distribution partner, to introduce and market the chip, provisionally named the “B20,” in China.
The B20 is projected to begin shipping in the second quarter of 2025, a source informed Reuters. Nvidia has not provided any comments regarding this development.
Nvidia has already designed three chips to meet U.S. export controls, including the H20. In an effort to compete with domestic rival Huawei amid sluggish sales, Nvidia reduced H20 prices. Nonetheless, sources indicate that sales for the H20 are now on the rise. According to SemiAnalysis data, Nvidia is expected to sell over one million H20 chips in China this year, generating approximately $12 billion in revenue, despite the existing U.S. trade restrictions. This anticipated sales figure is nearly double Huawei’s predictions for its Ascend 910B chip.
However, analysts from Jefferies have warned that Nvidia’s H20 chips might face risks under potential new U.S. trade regulations. They noted that within the upcoming annual review of semiconductor export control in October, there is a strong possibility that the H20 could be prohibited for sale to China. Such a ban could be enacted in several ways, including a specific ban on the product, a reduction in the permissible computing power, or limits on memory capacity.
Additionally, the U.S. may broaden its export controls to include chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or potentially extend these controls to overseas Chinese companies, though implementing such measures could be more complex, according to the analysts.