As the United States evaluates stricter trade measures aimed at preventing advanced chip technology from reaching China, Nvidia, a U.S.-based semiconductor company, is reportedly developing a version of its new artificial intelligence chips to align with these regulations.
According to reports from Reuters, Nvidia is creating a model of its Blackwell AI chips for the Chinese market and will partner with the local distributor, Inspur, to introduce and sell the chip, provisionally named the “B20,” in China.
Sources indicate that the B20 is slated to begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on this matter.
The company has already tailored three chips to meet U.S. export standards, including the H20 model, which has seen price reductions due to sluggish sales, largely to compete with chips from Huawei. However, reports suggest that sales of the H20 are improving, with projections indicating that Nvidia is set to sell over one million units of these chips in China this year, valued at approximately $12 billion, despite ongoing U.S. trade restrictions. This anticipated sales figure is nearly double that of Huawei’s expected Ascend 910B chip sales, according to data from SemiAnalysis.
Nevertheless, Jefferies analysts have warned that the H20 chips may face further risks under potential new U.S. trade rules. In their annual review of semiconductor export controls scheduled for October, analysts noted that it is quite probable that the H20 will be prohibited for sale to China. This could occur in several ways, including a specific ban on the product, a reduction in the allowable computing power, or limitations on memory capacity.
Additionally, there are considerations that the U.S. may broaden its export controls on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or expand these controls to include overseas Chinese firms, although the latter may prove more challenging to enforce.