As the U.S. contemplates stricter trade restrictions to keep advanced chip equipment out of China’s hands, Nvidia, a U.S.-based chipmaker, is reportedly developing a version of its new AI chips in compliance with these regulations.
Nvidia is working on a version of its Blackwell AI chips tailored for the Chinese market, according to a Reuters report citing anonymous sources. The company plans to collaborate with local distributor Inspur to launch and sell the chip, provisionally named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025, a source informed Reuters. Nvidia has declined to comment on the matter.
Nvidia has designed three chips specifically to meet U.S. export controls, including the H20, which the company has discounted to boost sales amid competitive pressure from domestic rival Huawei. Despite initially weak sales, H20 sales are now reportedly increasing, sources told Reuters. According to Financial Times, Nvidia is projected to sell over one million H20 chips in China this year, generating around $12 billion, despite U.S. trade restrictions. This expected revenue is nearly double that of Huawei’s forecasted sales for its Ascend 910B chip.
However, Nvidia’s H20 chips may be jeopardized by potential further U.S. trade regulations, according to analysts at Jeffries. During the U.S.’s annual review of semiconductor export controls in October, it is highly likely that the H20 will be prohibited for sale to China. Analysts suggest the ban could be enforced in several ways: through a product-specific ban, reducing the computing power cap, or limiting memory capacity.
The U.S. might also extend these export restrictions to other countries in the region, such as Malaysia, Indonesia, and Thailand, or to overseas Chinese companies, although implementing such measures may prove challenging, analysts noted.