As the United States evaluates stricter trade measures to prevent advanced chip technology from being sent to China, Nvidia, a leading chip manufacturer based in the U.S., is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
According to reports, Nvidia is creating a specialized variant of its Blackwell AI chips, tentatively named the “B20,” tailored for the Chinese market. The company plans to collaborate with a local distributor, Inspur, to market and sell this new chip. Deliveries of the B20 are anticipated to commence in the second quarter of 2025.
Nvidia has also designed three chips to meet U.S. export control standards, including the H20, which the company has recently reduced prices for due to sluggish sales and competition from local rival Huawei. Nevertheless, sales of the H20 are reportedly on the rise, with projections suggesting that Nvidia could sell over one million units of the chip in China this year, estimated to generate approximately $12 billion despite ongoing U.S. trade restrictions.
However, analysts from Jeffries have indicated that the H20 chips may face risks under potential new U.S. trade regulations. As part of its annual semiconductor export control review scheduled for October, there is a significant possibility that sales of the H20 to China could face a ban. This ban could be implemented in various manners, including a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
Furthermore, the U.S. may broaden these export controls to include chip sales to neighboring countries such as Malaysia, Indonesia, and Thailand, as well as to overseas Chinese firms, although the latter could be more complex to enforce.