As the United States considers implementing stricter trade regulations to hinder the flow of advanced chip technology to China, Nvidia, a leading U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to adhere to these restrictions.
According to Reuters, Nvidia is preparing a variant of its Blackwell AI chips for the Chinese market, collaborating with local distributor Inspur for the launch and distribution of a chip provisionally named the “B20.” Sources indicate that shipments of the B20 are expected to commence in the second quarter of 2025.
Nvidia has multiple chip models specifically designed to align with U.S. export regulations, including the H20, which the company has recently reduced prices for due to sluggish sales as it competes with Chinese competitor Huawei. Reports suggest that H20 sales are beginning to rise, with Nvidia anticipated to sell over one million H20 chips in China this year, generating approximately $12 billion, despite existing U.S. trade barriers.
However, analysts from Jefferies have indicated that the H20 chips may face challenges under potential new U.S. trade measures. With the annual review of semiconductor export controls scheduled for October, there is a strong possibility that sales of the H20 may be prohibited in China. This potential ban could manifest in several forms, such as product-specific bans, adjustments to computing power limitations, or memory capacity restrictions.
In addition, the U.S. could broaden its export regulations to include chips sold to other regional countries like Malaysia, Indonesia, and Thailand, or impose controls on overseas Chinese firms, although the latter would be more complex to execute, according to analysts.