As the United States considers implementing stricter trade restrictions to hinder the flow of advanced chip technology to China, Nvidia, a prominent U.S.-based chipmaker, is reportedly developing a variant of its latest artificial intelligence chips to align with these regulations.
According to Reuters, Nvidia is creating a version of its new Blackwell AI chips specifically for the Chinese market, working in partnership with local distributor Inspur to introduce and market a chip provisionally named the “B20.” Sources suggest that the B20 is anticipated to begin shipping in the second quarter of 2025, although Nvidia has refrained from making any official comments on the matter.
Currently, Nvidia has three chips that have been engineered to adhere to U.S. export controls, including the H20 chip, which the company has reduced prices on to remain competitive against domestic rival Huawei. Reports indicate that sales of the H20 have started to increase, with projections estimating that Nvidia will sell over one million units of this chip in China this year, generating approximately $12 billion, as per data from SemiAnalysis cited by the Financial Times. This expected sales figure is nearly double the sales outlook for Huawei’s Ascend 910B chip.
However, Jefferies analysts warn that Nvidia’s H20 chips could be adversely affected by new U.S. trade policies. They anticipate that during the upcoming annual review of semiconductor export controls in October, the H20 might face a ban on sales to China. Possible ban scenarios include a specific prohibition, a reduction in allowed computing power, or limitations on memory capacity.
Additionally, analysts note that the U.S. may broaden its export restrictions to encompass chips sold to other nations in the region, such as Malaysia, Indonesia, and Thailand, or apply controls to overseas Chinese companies, although the latter would be more challenging to enforce.