As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from being supplied to China, Nvidia, a U.S.-based semiconductor manufacturer, is reportedly developing a modified version of its latest artificial intelligence chips to adhere to these regulations.
According to sources cited by Reuters, Nvidia is creating a new variant of its Blackwell AI chips tailored for the Chinese market, in collaboration with local distribution partner Inspur. This new chip, tentatively named the “B20,” is expected to begin shipping in the second quarter of 2025.
Nvidia has designed three chips specifically to meet U.S. export controls, one of which is the H20. The company has cut prices on the H20 to remain competitive against domestic rival Huawei, but reports indicate that sales of this chip are now on the rise. Nvidia is projected to sell over one million H20 units in China this year, valued at approximately $12 billion, despite prevailing U.S. trade restrictions. This anticipated sales figure is said to be nearly double that of Huawei’s expected sales for its Ascend 910B chip.
However, analysts from Jefferies have warned that Nvidia’s H20 chips might face additional risks under future U.S. trade regulations. They suggest that during the upcoming annual review of semiconductor export controls in October, there is a strong possibility that the H20 could be prohibited from being sold in China. The potential ban could be implemented in various ways, including through a product-specific ban, adjustments to computing power limits, or restrictions on memory capacity.
Additionally, there are discussions regarding the possibility of extending export controls on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or to foreign Chinese firms. However, such measures may prove more complex to enact, according to industry analysts.