As the U.S. mulls over stricter trade measures to prevent advanced chip technology from being sold to China, Nvidia, the American chipmaker, is reportedly developing a version of its new artificial intelligence chips to meet these regulations.
According to reports, Nvidia is customizing its Blackwell AI chips for the Chinese market and plans to collaborate with a local distributor, Inspur, for the launch and distribution of the chip, expected to be named the “B20.” The B20 is projected to begin shipping in the second quarter of 2025. Nvidia has not provided any comments regarding this development.
Nvidia has three chip models specifically designed to adhere to U.S. export controls, including the H20, which it recently discounted in response to sluggish sales and competition from the Chinese company Huawei. Despite initial struggles, H20 sales are reportedly increasing, and Nvidia anticipates selling over one million units of the H20 chip in China this year, projected to generate around $12 billion in revenue, as per data from SemiAnalysis reported by the Financial Times. This sales figure nearly doubles the sales expectations for Huawei’s Ascend 910B chip.
However, analysts at Jeffries have cautioned that Nvidia’s H20 chips may face risks under new U.S. trade regulations. The annual review of U.S. semiconductor export controls is scheduled for October, and analysts believe there is a strong likelihood that the H20 will be prohibited for sale to China. Potential bans could emerge in various forms, including specific product bans, reductions in the computing power threshold, or limitations on memory capacity.
Additionally, the U.S. may consider extending export controls on chips meant for other nations in the region, such as Malaysia, Indonesia, and Thailand, or imposing restrictions on overseas Chinese companies, though the latter would be more challenging to enforce, according to analysts.