As the U.S. considers implementing stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a new version of its artificial intelligence chips designed to comply with these regulations.
According to reports from Reuters, Nvidia is collaborating with Inspur, a local distribution partner, to launch and sell a chip tentatively named the “B20” in the Chinese market. This customized version of its Blackwell AI chips is expected to begin shipping in the second quarter of 2025.
Nvidia currently produces three chips that meet U.S. export control requirements, including the H20. The company has reduced the prices of the H20 in response to weak sales, attempting to compete with chips from its Chinese rival, Huawei. However, sales of the H20 have recently begun to increase, and Nvidia is projected to sell over one million of these chips in China this year, potentially generating around $12 billion, despite ongoing trade restrictions.
Analysts at Jefferies have indicated that Nvidia’s H20 chips could face new challenges under impending U.S. trade regulations. In their annual review of semiconductor export controls in October, there is a strong likelihood that the H20 will be prohibited for sale in China. The potential ban could be implemented through various methods, including product-specific restrictions, lowering the computing power limits, or capping memory capacity. Additionally, analysts suggest that the U.S. may extend export controls to chips sold to other countries in the region or impose restrictions on overseas Chinese companies, although executing these measures would be more complex.