As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from reaching China, U.S.-based chip manufacturer Nvidia is reportedly developing a modified version of its artificial intelligence chips to align with these regulations.
According to a report from Reuters citing unnamed sources, Nvidia is creating the “B20” Blackwell AI chip specifically for the Chinese market. The chipmaker plans to collaborate with local distributor Inspur to launch and sell the new chip in China.
The B20 is anticipated to begin shipments in the second quarter of 2025, as per the sources. Nvidia has not provided any official comments regarding this development.
Nvidia’s strategy includes three chip models designed to comply with U.S. export controls, such as the H20. The company has reduced prices for the H20 due to lower sales, in an effort to compete against domestic rival Huawei. However, sales of the H20 are reportedly increasing, with expectations to exceed one million units sold in China this year, valued at approximately $12 billion, according to data from SemiAnalysis. This figure is nearly double the expected sales for Huawei’s Ascend 910B chip.
Nevertheless, Nvidia’s H20 chips could face challenges due to potential future U.S. trade regulations, as noted by analysts at Jeffries. They suggest that when the U.S. reviews semiconductor export controls in October, there is a strong possibility that the H20 could be prohibited for sale in China. Such a ban could arise through a specific product ban, changes to computing power limits, or restrictions on memory capacity.
Additionally, there is a possibility that the U.S. may expand export controls on chips sold to neighboring nations, including Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although the latter would be more complex to enforce, according to analysts.