As the United States evaluates stricter trade measures to limit the flow of advanced semiconductor technology to China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly adapting its upcoming artificial intelligence (AI) chips to navigate these regulations. According to sources familiar with the situation, Nvidia plans to introduce a local version of its new Blackwell AI chips, tentatively named the “B20,” specifically tailored for the Chinese market.
Nvidia is set to collaborate with a Chinese distribution partner, Inspur, to market and distribute the B20, which is projected to begin shipping in the second quarter of 2025. The company has not issued further comments on these developments.
Currently, Nvidia offers several chip models designed to meet U.S. export restrictions, such as the H20, which experienced a price reduction amid stiff competition from domestic competitors like Huawei. Despite initial challenges, sales of the H20 are reportedly on the rise, with projections indicating that Nvidia is on track to sell over one million units in China this year, generating approximately $12 billion in revenue, according to SemiAnalysis data. This figure is nearly double the expected sales of Huawei’s Ascend 910B chip.
However, Nvidia’s H20 chips may face future challenges under potential new U.S. trade regulations. Analysts from Jefferies have noted that during the upcoming annual review of semiconductor export controls in October, it’s likely that the H20 might be banned from sales to China due to several possible measures, including product-specific bans or revised limits on computing power and memory capacity. There is also the possibility that export controls could extend to chips sold to other regional countries or even to Chinese companies operating abroad.
In conclusion, Nvidia’s proactive approach to comply with trade regulations highlights the company’s resilience and adaptability in navigating a complex market landscape. As the semiconductor industry continues to evolve, the potential for growth in both domestic and international markets remains promising, especially with innovative products like the B20 on the horizon.