As the United States contemplates stricter trade measures to stop advanced chip technology from reaching China, Nvidia, a leading U.S. chip manufacturer, is reportedly developing a version of its new AI chips to adhere to these regulations.
According to sources speaking to Reuters, Nvidia is designing the Blackwell AI chip specifically for the Chinese market and plans to collaborate with a local distributor, Inspur, for its launch and sales. The chip is tentatively named the “B20” and is expected to begin shipping in the second quarter of 2025.
Nvidia has already developed three chips that are tailored to meet U.S. export restrictions, including the H20, which the company recently reduced prices for due to sluggish sales in order to stay competitive with chips from local rival Huawei. However, sales of the H20 have started to rise, with projections indicating that Nvidia could sell over one million of these chips in China this year, valued at approximately $12 billion, despite existing trade limitations. This expected figure is nearly double Huawei’s own sales predictions for its Ascend 910B chip.
Analysts from Jefferies have cautioned that Nvidia’s H20 chips may face increased risk under potential new U.S. trade regulations. The upcoming annual review of semiconductor export controls in October could result in a ban on H20 sales to China, according to the analysts. Such a ban could be implemented in several ways, including a specific ban on the product, adjustments to the computing power limits, or restrictions on memory capacity.
Furthermore, the U.S. may consider expanding export restrictions on chips sold to other Southeast Asian nations, such as Malaysia, Indonesia, and Thailand, or even extend controls to Chinese companies operating overseas, though the latter would be more challenging to enforce.