As the U.S. contemplates imposing stricter trade restrictions to prevent advanced chip technology from reaching China, U.S.-based semiconductor manufacturer Nvidia is reportedly developing a modified version of its new artificial intelligence chips to adhere to these regulations.
According to a report from Reuters citing unnamed sources, Nvidia is planning to create a version of its Blackwell AI chips for the Chinese market, working alongside a local distributor, Inspur. This new chip is tentatively named the “B20” and is expected to begin shipping in the second quarter of 2025. Nvidia has not provided any comments regarding this development.
Nvidia has already created three chips that are designed to align with U.S. export controls, including the H20, which the company has reduced prices for due to weak sales as it competes with domestic rival Huawei. However, sales for the H20 are reportedly on the rise, with estimates suggesting that Nvidia could sell over one million H20 chips in China this year, projected to be worth approximately $12 billion, despite the ongoing U.S. trade restrictions. This anticipated figure is nearly double that of Huawei’s sales expectations for its Ascend 910B chip.
On the other hand, analysts from Jefferies have highlighted that Nvidia’s H20 chips may face challenges due to potential further U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export controls in October, there is a strong likelihood that the H20 may be prohibited from being sold to China. Such a ban could take the form of a specific product ban, a reduction in the allowed computing power, or limitations on memory capacity.
Additionally, there is potential for the U.S. to broaden its export controls on chips to other countries in the region, including Malaysia, Indonesia, and Thailand, or to extend these controls to overseas Chinese companies, although such measures could prove more difficult to enforce, according to analysts.