As the U.S. deliberates over stricter trade limitations to prevent advanced chip technology from reaching China, Nvidia, a leading chip manufacturer based in the U.S., is reportedly developing a version of its latest artificial intelligence chips to adhere to these regulations.
According to reports from unnamed sources, Nvidia is creating a variant of its Blackwell AI chips specifically for the Chinese market, collaborating with a local distribution partner, Inspur, to introduce and sell a chip currently referred to as the “B20” in China.
The B20 is expected to commence shipping in the second quarter of 2025, as per the source. Nvidia has opted not to provide any comments regarding this development.
Nvidia has already designed three chip models, including the H20, to comply with U.S. export controls, adjusting the prices of the H20 chips to boost weak sales against domestic competitor Huawei. However, reports indicate that H20 sales are now increasing, with Nvidia anticipated to sell over one million units of the H20 in China this year, generating approximately $12 billion, notwithstanding U.S. trade restrictions. This sales figure is notably nearly double the projections for Huawei’s Ascend 910B chip.
On the other hand, analysts at Jefferies have warned that Nvidia’s H20 chips may face risks due to potential new U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export controls in October, they suggest that it is highly probable that the H20 will be prohibited from sale to China. This ban could manifest in several ways, including a specific product ban or by reducing the caps on computing power and memory capacity.
Additionally, analysts note that the U.S. might broaden its export control measures on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or expand controls to overseas Chinese firms, although implementing such measures would present additional challenges.