As the U.S. weighs implementing stricter trade regulations to limit advanced chip technology from reaching China, Nvidia, a leading American chip manufacturer, is reportedly developing a version of its new artificial intelligence chips that aligns with these regulations.
Sources indicate that Nvidia is creating a variant of its Blackwell AI chips, specifically for the Chinese market. The company plans to collaborate with local distribution partner Inspur to introduce and distribute the chip, provisionally named the “B20,” in China.
According to reports, the B20 is set to start shipping by the second quarter of 2025. Nvidia has chosen not to comment on these developments.
The company has also created three chips designed to adhere to U.S. export regulations, one of which is the H20. Nvidia recently reduced the prices of the H20 to boost sales against competition from local rival Huawei. Reports suggest that sales of the H20 have been increasing, with Nvidia expected to sell over one million units in China this year, amounting to approximately $12 billion, despite existing U.S. trade restrictions.
Analysts have pointed out that Nvidia’s H20 chips may face challenges under potential future U.S. trade measures. As the U.S. is set to review semiconductor export controls in October, experts believe it is “highly likely” that the H20 will be prohibited from being sold to China. Potential avenues for such a ban include a product-specific prohibition, reducing the computing power limit, or capping memory capacity.
Moreover, the U.S. could extend its export control policies to include chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even apply these controls to overseas Chinese firms, though doing so may prove more complicated, according to analysts.