As the United States contemplates stricter trade regulations to prevent advanced chip technology from reaching China, Nvidia, a leading chip manufacturer based in the U.S., is reportedly developing a new version of its artificial intelligence chips that would comply with these potential rules.
According to reports, Nvidia is creating a variant of its Blackwell AI chips specifically tailored for the Chinese market, working in partnership with a local distributor, Inspur. This new chip, tentatively named the “B20,” is expected to begin shipping in the second quarter of 2025.
Although Nvidia has chosen not to comment on the matter, sources indicate that the company currently has three chips designed to adhere to U.S. export controls, including the H20 chip. Nvidia has reduced prices for the H20 in response to declining sales as it competes against local rival Huawei. However, reports suggest that sales of the H20 are on the rise, with projections indicating that the company could sell over one million units in China this year, translating to approximately $12 billion in revenue, despite existing U.S. trade barriers. This anticipated sales figure is nearly double Huawei’s forecast for its Ascend 910B chip.
In contrast, analysts from Jefferies warn that Nvidia’s H20 chips could face increased risks if further U.S. trade regulations are enacted. With the annual review of U.S. semiconductor export controls approaching in October, analysts predict a high probability that the sale of the H20 to China could be prohibited. Such a ban might occur through various methods, including a specific product ban, lowering caps on computing power, or imposing restrictions on memory capacity.
Moreover, the U.S. might extend its export controls on chips to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even to overseas companies with Chinese ties, although the latter would be more complex to enforce, according to analysts.