As the United States contemplates stricter trade measures to limit the export of advanced chip technology to China, U.S.-based semiconductor manufacturer Nvidia is reportedly developing a version of its new artificial intelligence chips that will adhere to these impending regulations.
According to sources familiar with the situation, Nvidia is creating a specific model of its Blackwell AI chips tailored for the Chinese market. This version, referred to as the “B20,” is expected to be launched and distributed in collaboration with a local partner, Inspur. Initial shipments of the B20 are anticipated to begin in the second quarter of 2025.
Nvidia has already designed three chips that comply with U.S. export controls, including the H20 chip. To address sluggish sales and compete against domestic rival Huawei, Nvidia reduced prices for the H20. Recent reports indicate that sales for the H20 are on the rise, with Nvidia projected to sell over one million units in China this year, generating an estimated $12 billion in revenue despite existing U.S. trade barriers. This figure is nearly double Huawei’s sales projections for its Ascend 910B chip, according to industry data from SemiAnalysis.
However, analysts at Jefferies have warned that Nvidia’s H20 chips may face further risks under additional U.S. trade restrictions. As the annual review of U.S. semiconductor export controls approaches in October, analysts believe it is “highly likely” that the sale of the H20 will be prohibited for Chinese markets. Potential scenarios for this ban could include a “product-specific ban,” a reduction in allowable computing power, or limits on memory capacity.
Furthermore, the U.S. may consider extending export restrictions to chips sold to other regional nations such as Malaysia, Indonesia, and Thailand, or even imposing controls on overseas Chinese companies, though such actions would likely be more challenging to enforce, according to the analysts.