As the United States contemplates stricter trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to adhere to these upcoming regulations.
According to reports, Nvidia is focused on creating its Blackwell AI chips for the Chinese market and plans to collaborate with a local distributor, Inspur, in the process. The new chip, tentatively named the “B20,” is anticipated to begin shipping in the second quarter of 2025.
While Nvidia has not issued any comments regarding this development, it is known to have already introduced three chips that comply with U.S. export controls, including the H20. Nvidia had previously reduced prices for the H20 due to sluggish sales in order to compete with domestic rival Huawei. However, recent reports indicate that sales of the H20 have begun to increase, with expectations of selling over one million units in China this year, generating approximately $12 billion in revenue despite existing U.S. trade limitations.
In contrast, Nvidia’s sales projections for the H20 are nearly double those anticipated for Huawei’s Ascend 910B chip, according to SemiAnalysis data referenced by the Financial Times.
As the U.S. prepares for its annual review of semiconductor export controls this October, analysts at Jefferies have warned that the H20 chips may face increased restrictions. They predict that it is likely the H20 could be banned from sale to China in one of several ways, which may include product-specific bans, lowering the computing power limits, or restricting memory capacity. Furthermore, the U.S. might also consider extending export controls to chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or potentially widening these controls to overseas Chinese companies, although this may prove more complex to enforce.