As the United States considers implementing stricter trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a U.S.-based chip manufacturer, is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
According to a report by Reuters, Nvidia is creating a version of its Blackwell AI chips specifically for the Chinese market. The company plans to collaborate with a local distribution partner, Inspur, to launch and market the chip, which is currently referred to as the “B20.”
The B20 is anticipated to begin shipping in the second quarter of 2025, as noted by sources familiar with the situation. Nvidia has chosen not to comment on this development.
Nvidia has already introduced three chips designed to meet U.S. export controls, including the H20, which the company has reduced in price due to weak sales, largely driven by competition from the domestic chipmaker Huawei. Despite these challenges, sources indicate that sales of the H20 have begun to improve. Nvidia is projected to sell over one million H20 chips in China this year, amounting to roughly $12 billion, despite the existing U.S. trade restrictions. This estimate nearly doubles Huawei’s sales expectations for its Ascend 910B chip.
However, analysts at Jefferies have warned that the H20 chips might face additional risks under future U.S. trade regulations. They predict that when the U.S. conducts its annual review of semiconductor export controls in October, it is very likely that the sale of H20 chips to China will be prohibited. The ban could occur through various methods, including a specific product ban, lowering the computing power limit, or imposing restrictions on memory capacity.
Furthermore, there is potential for the U.S. to broaden its export controls on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or to extend these controls to overseas Chinese companies, although this latter option would be more challenging to execute, according to industry analysts.