As the United States contemplates stricter trade measures to hinder the transfer of advanced chip technology to China, the American chip manufacturer Nvidia is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
According to reports, Nvidia is creating a version of its latest Blackwell AI chips specifically for the Chinese market. The company is expected to collaborate with a local distribution partner, Inspur, to introduce and market the chip, which is tentatively named the “B20,” in China.
The shipment of the B20 is anticipated to commence in the second quarter of 2025, as per sources. Nvidia has opted not to comment on the matter.
In addition to the B20, Nvidia has three other chips that have been designed to meet U.S. export control guidelines, including the H20. The company reduced prices for the H20 due to lagging sales in an effort to compete with domestic rival Huawei. However, sales of the H20 are reportedly on the rise, with projections suggesting that Nvidia could sell over one million H20 chips in China this year, generating approximately $12 billion in revenue despite the existing trade restrictions.
Conversely, analysts at Jefferies have warned that Nvidia’s H20 chips may face challenges under future U.S. trade policies. In the upcoming October review of semiconductor export controls, it is “highly likely” that the sale of the H20 to China will be prohibited, according to the analysts. Potential methods for implementing such a ban include establishing a product-specific prohibition, reducing the computing power threshold, or limiting memory capacity.
Furthermore, there is speculation that export regulations on chips sold to neighboring countries such as Malaysia, Indonesia, and Thailand might be expanded, as well as the possibility of extending controls to overseas Chinese firms, although this may prove more complicated to carry out.