As the U.S. contemplates stricter trade measures aimed at preventing advanced chip technology from being sold to China, Nvidia, a prominent U.S.-based chipmaker, is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
According to reports, Nvidia is creating a variant of its Blackwell AI chips tailored for the Chinese market. The company plans to collaborate with a local distribution partner, Inspur, to introduce and market the chip, which is provisionally named the “B20,” in China. The anticipated launch for shipping the B20 is set for the second quarter of 2025. Nvidia has not provided any comments on this development.
The chipmaker has already designed three chips specifically to meet U.S. export compliance, including the H20, which it recently reduced in price to bolster sales against domestic competitor Huawei. Despite facing trade restrictions, H20 sales have reportedly begun to rise, with Nvidia expected to sell over a million units in China this year, generating approximately $12 billion in revenue. This figure nearly doubles Huawei’s projected sales for its Ascend 910B chip.
However, Jefferies analysts warn that Nvidia’s H20 chips might be affected by additional U.S. trade regulations. As part of the annual review of semiconductor export controls in October, analysts predict a high likelihood that the H20 chips will face a ban on sales to China. Potential measures for this ban could involve specific product bans, adjustments to computing power limits, or constraints on memory capacity.
Additionally, the U.S. may consider extending these export controls to chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, or could apply the controls to overseas Chinese enterprises, though implementing this would be more challenging according to experts.