As the United States evaluates stricter trade measures to stop advanced chip technology from reaching China, Nvidia, a leading American semiconductor manufacturer, is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.
According to reports, Nvidia is creating a model of its Blackwell AI chips specifically for the Chinese market and is expected to collaborate with a local partner, Inspur, to introduce and market the chip, provisionally named the “B20,” in China.
Sources indicated that the B20 could begin shipping in the second quarter of 2025. Nvidia has not commented on this development.
The company currently has three chips designed to meet U.S. export controls, including the H20, which saw a price reduction due to underwhelming sales as it competes with products from domestic rival Huawei. However, sales of the H20 have recently been improving. Reports suggest Nvidia may sell over one million of its H20 chips in China this year, potentially generating around $12 billion in revenue, despite existing U.S. trade barriers. This anticipated figure is nearly double Huawei’s expected sales for its Ascend 910B chip.
In addition, analysts from Jeffries have warned that the H20 chips might face additional risks under new U.S. trade laws. They indicated that during the upcoming annual review of U.S. semiconductor export controls in October, it is highly likely that the H20 may be prohibited from sales to China. Potential banning could occur through a product-specific ban, a reduction of the computing power limit, or restrictions on memory capacity.
Furthermore, the U.S. may broaden its export limitations on chips sold to neighboring countries in the region, including Malaysia, Indonesia, and Thailand, or extend these controls to overseas Chinese firms, although the latter would be more challenging to implement, according to the analysts.