As the United States considers more stringent trade measures to restrict advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips that adheres to these regulations.
According to information from unnamed sources, Nvidia is creating a version of its Blackwell AI chips for the Chinese market and plans to collaborate with local distributor Inspur for the launch and sale of the chip, which is currently referred to as the “B20.” Sources have indicated that the B20 is anticipated to begin shipping in the second quarter of 2025.
Nvidia has also designed three chips specifically to meet U.S. export controls, including the H20, which the company reduced prices for in response to declining sales compared to its domestic rival, Huawei. Reports suggest that sales of the H20 chips are now increasing, with estimates indicating that Nvidia could sell over one million H20 chips in China this year, valued at around $12 billion, despite existing U.S. trade restrictions.
However, analysts from Jefferies have cautioned that Nvidia’s H20 chips could face new challenges under forthcoming U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export controls, there is a strong likelihood that the H20 could be prohibited from being sold to China. Analysts identified three potential measures for such a ban, including a targeted prohibition, a reduction in the computing power cap, and/or restrictions on memory capacity.
Furthermore, the U.S. may consider extending export controls on chips sold to other countries in Southeast Asia, such as Malaysia, Indonesia, and Thailand, or possibly to Chinese companies operating overseas, although implementing such measures may prove challenging.