As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, a leading chip manufacturer based in the U.S., is reportedly developing a modified version of its new artificial intelligence chips to adhere to these regulations.
Nvidia is reportedly creating a version of its Blackwell AI chips tailored for the Chinese market, according to sources familiar with the situation. The company is expected to partner with a local distributor, Inspur, to introduce and market the chip, provisionally named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025, as per the reports. Nvidia has not provided any official comments on the matter.
Nvidia has already developed three chips specifically designed to align with U.S. export regulations. One of these, the H20, had its prices reduced in response to sluggish sales, in an attempt to compete with products from the domestic competitor Huawei. However, sales of the H20 chips are reportedly on the rise. Forecasts suggest that Nvidia may sell over one million H20 chips in China this year, valued at approximately $12 billion, despite existing U.S. trade restrictions. This estimate is nearly double Huawei’s projected sales for its Ascend 910B chip.
On the other hand, analysts from Jefferies warn that Nvidia’s H20 chips could face challenges under potential new U.S. trade measures. They pointed out that during the annual review of semiconductor export controls scheduled for October, there is a significant likelihood that the H20 will be prohibited from being sold to China. Possible methods for implementing this ban could include a specific product prohibition, a reduction in the computing power limit, or restrictions on memory capacity.
Additionally, the U.S. may broaden its export controls to chips destined for other countries in the region, such as Malaysia, Indonesia, and Thailand, or extend regulations to encompass overseas Chinese companies, although this latter approach would be more challenging to enforce, according to the analysts.