As the U.S. contemplates stricter trade measures to restrict advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a variant of its new artificial intelligence chips to adhere to these regulations.
According to reports from Reuters, Nvidia is crafting a version of its Blackwell AI chips intended for the Chinese market. The company plans to collaborate with a local distributor, Inspur, to launch the chip, provisionally named the “B20,” in China.
The B20 is anticipated to begin shipping by the second quarter of 2025, as per sources. Nvidia has not issued any comments regarding this development.
Nvidia has designed three chips specifically to meet U.S. export compliance, including the H20. The company previously reduced prices for the H20 due to lackluster sales in an attempt to compete with domestic rival Huawei. However, reports indicate that sales of the H20 are picking up momentum. Nvidia is projected to sell over one million H20 chips in China this year, generating approximately $12 billion, despite the existing trade limitations, according to the Financial Times, which cites data from SemiAnalysis. This forecast nearly doubles Huawei’s anticipated sales of its Ascend 910B chip.
Analysts from Jefferies raised concerns that Nvidia’s H20 chips might face additional risks under forthcoming U.S. trade regulations. In their note, they suggested that during the annual examination of semiconductor export controls in October, it is quite feasible that sales of the H20 to China could be prohibited. Such a ban could come about through various means, including a specific ban on the product, a reduction in the allowable computing power, or limits on memory capacity.
Furthermore, the U.S. might expand its export restrictions to encompass chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even extend controls to overseas Chinese firms, although this could present challenges in implementation, according to analysts.