As the United States contemplates implementing stricter trade restrictions aimed at preventing advanced chip technology from reaching China, U.S.-based chip manufacturer Nvidia is reportedly developing a version of its latest artificial intelligence chips that aligns with these regulations.
According to reports, Nvidia is creating a new iteration of its Blackwell AI chips specifically for the Chinese market, collaborating with a local distribution partner, Inspur, to introduce and sell the chip, tentatively named the “B20.”
Sources indicate that the B20 chip is projected to begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on the matter.
Nvidia has three chip models designed to comply with U.S. export regulations, including the H20. The company has reduced prices for the H20 due to sluggish sales, aiming to compete with chips from local rival Huawei. Reports suggest that H20 sales are now recovering, with Nvidia expected to sell over one million H20 chips in China this year, generating approximately $12 billion in revenue despite existing U.S. trade restrictions. This anticipated sales volume is nearly double the sales expectations for Huawei’s Ascend 910B chip.
Nevertheless, analysts from Jefferies warn that Nvidia’s H20 chips may face risks under potential new U.S. trade regulations. They anticipate that during the annual review of U.S. semiconductor export controls scheduled for October, it is highly probable that the H20 will be prohibited from sale to China. Such a ban could be instituted through a specific product ban, lower computing power thresholds, or restrictions on memory capacity.
Additionally, the U.S. may consider extending export controls on chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or broaden the restrictions to overseas Chinese firms, although the latter option may prove more challenging to enforce.