As the United States contemplates stricter trade measures to restrict advanced chip technology from reaching China, Nvidia, a major U.S.-based chip manufacturer, is reportedly planning to develop a version of its latest artificial intelligence chips that aligns with these regulations.
According to reports, Nvidia is creating a model of its new Blackwell AI chips specifically for the Chinese market and is expected to collaborate with a local distributor, Inspur, to roll out and promote a chip tentatively named the “B20” in China.
Sources indicate that the B20 is anticipated to begin shipping by the second quarter of 2025, although Nvidia has chosen not to comment on these plans.
Nvidia currently has three chips that are designed to meet U.S. export regulations, including the H20, which the company has reduced prices for due to modest sales as it competes with chips from domestic rival Huawei. However, sources mention that sales of the H20 are on the rise. It is projected that Nvidia will sell over one million H20 chips in China this year, amounting to approximately $12 billion in sales, even amid U.S. trade barriers. This projection nearly doubles the anticipated sales for Huawei’s Ascend 910B chip, as reported by the Financial Times using SemiAnalysis data.
Concerns have emerged that Nvidia’s H20 chips may face new restrictions under impending U.S. trade regulations. Analysts at Jefferies noted that during the annual review of semiconductor export controls scheduled for October, it is “highly likely” the H20 will be prohibited from being sold to China. There are various potential mechanisms for such a ban, which could include a targeted prohibition, a reduction in the allowed computing power, or limitations on memory capacity.
Furthermore, U.S. export controls might also be expanded to chips sold to other countries, including Malaysia, Indonesia, and Thailand, or even extended to cover overseas Chinese companies. However, such measures would be more challenging to enforce, according to analysts.