As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, the American chip manufacturer, is reportedly developing a new version of its artificial intelligence chips to align with these regulations.
According to sources cited by Reuters, Nvidia is working on a version of its Blackwell AI chips specifically for the Chinese market. The company plans to collaborate with a local distribution partner, Inspur, to introduce the chip, which is tentatively named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has chosen not to provide any comments on the matter.
Nvidia currently offers three chip models designed to meet U.S. export controls, including the H20, which the company recently reduced prices on due to lackluster sales in an attempt to compete with products from domestic rival Huawei. Nevertheless, sources indicate that sales of the H20 are now increasing. Nvidia is projected to sell over one million of its H20 chips in China this year, valued at approximately $12 billion, despite trade restrictions, as reported by the Financial Times, referencing data from SemiAnalysis. This figure is nearly twice the expected sales for Huawei’s Ascend 910B chip.
Additionally, analysts from Jefferies have warned that Nvidia’s H20 chips could face risks under impending U.S. trade regulations. They noted that during the U.S. annual review of semiconductor export controls in October, it is “highly likely” that the H20 will be prohibited for sale to China. Such a ban could manifest in various forms, including a specific product ban, a reduction in the computing power limit, or constraints on memory capacity.
Furthermore, analysts suggest that the U.S. might extend export restrictions on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even broaden the regulations to affect overseas Chinese companies, although the latter would be more challenging to enforce.