As the U.S. contemplates stricter trade measures to prevent advanced semiconductor technology from reaching China, Nvidia, a prominent American chipmaker, is reportedly developing a modified version of its new AI chips to adhere to these regulations.
According to reports from Reuters, Nvidia is creating a version of its Blackwell AI chips specifically for the Chinese market. The company is expected to collaborate with a local distributor, Inspur, to launch and market the chip, which is provisionally named the “B20,” in China.
Sources indicate that the B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on these developments.
Additionally, Nvidia has designed three chips to align with U.S. export controls, including the H20, which the company reduced prices for in response to sluggish sales and competition from local rival Huawei. However, sales for the H20 are reportedly on the rise, with projections suggesting Nvidia will sell over one million units in China this year, valued at approximately $12 billion, despite ongoing U.S. trade restrictions, as noted by the Financial Times referencing SemiAnalysis data. This expected sales figure nearly doubles the sales forecasts for Huawei’s Ascend 910B chip.
At the same time, analysts from Jefferies have indicated that the H20 chips might face risks under potential new U.S. trade regulations. During the annual review of semiconductor export controls scheduled for October, they suggest that it is highly probable the H20 will be banned from sale to China. The ban might be enforced in three ways: through a direct product-specific prohibition, by lowering the computing power thresholds, or by imposing limits on memory capacity.
Moreover, U.S. export controls could also be broadened to include chips sold to other nations in the region, such as Malaysia, Indonesia, and Thailand, or to overseas Chinese companies, although implementing these measures would present additional challenges, analysts noted.