As the United States contemplates stricter trade limitations aimed at preventing advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its latest artificial intelligence chips to comply with these upcoming regulations.
Nvidia is working on a variant of its Blackwell AI chips for the Chinese market, according to a Reuters report citing anonymous sources familiar with the situation. The company plans to collaborate with a local distributor, Inspur, to introduce and sell the chip, which is provisionally named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025, as noted by one source. Nvidia did not provide any comments on the matter.
The manufacturer has already created three chips specifically designed to adhere to U.S. export controls, including the H20, which it recently reduced prices for due to sluggish sales in an effort to remain competitive against local rival Huawei. However, sources indicated that H20 sales are on the rise. Nvidia is projected to sell over one million H20 chips in China this year, amounting to approximately $12 billion, despite existing U.S. trade restrictions, according to data reported by the Financial Times. This projection nearly doubles Huawei’s anticipated sales for its Ascend 910B chip.
Meanwhile, analysts from Jefferies have expressed concerns that Nvidia’s H20 chips may face risks under potential further U.S. trade regulations. They suggest that during the upcoming annual review of semiconductor export controls in October, it is highly probable that the H20 will be prohibited from being sold to China. The ban could be implemented in various ways, including a specific product ban, a reduction in the computing power limit, or a restriction on memory capacity.
Additionally, the U.S. may extend its export controls on chips destined for other countries in the region, such as Malaysia, Indonesia, and Thailand, or broaden the restrictions to encompass overseas Chinese companies; however, analysts believe this would be more challenging to execute.