As the United States considers implementing stricter trade regulations to prevent advanced chip technology from reaching China, Nvidia, a prominent American chipmaker, is reportedly developing a version of its new artificial intelligence chips to comply with these forthcoming rules.
According to sources familiar with the situation, Nvidia is working on a specific iteration of its Blackwell AI chips intended for the Chinese market, known as the “B20.” The company plans to collaborate with a local distributor, Inspur, to facilitate the launch and sale of this chip in China.
The B20 is anticipated to begin shipping in the second quarter of 2025, as per reports. Nvidia has not officially commented on these developments.
Nvidia has already produced three chip models that align with U.S. export regulations, including the H20, which the company recently reduced prices for to boost lagging sales against its domestic rival, Huawei. However, H20 sales have reportedly been increasing, with expectations that Nvidia will sell over one million H20 chips in China this year, generating approximately $12 billion, despite existing U.S. trade restrictions. This sales projection is nearly double that of Huawei’s anticipated sales for its Ascend 910B chip.
Conversely, analysts from Jefferies have indicated that Nvidia’s H20 chips may face additional risks under new U.S. trade regulations. Their annual review of semiconductor export controls is scheduled for October, and it is believed that the H20 could potentially be banned from sale to China. This ban might be enacted through various means, including specific product bans, adjustment of computing power limits, or restrictions on memory capacity.
Furthermore, the U.S. could consider expanding export controls on chip sales to neighboring countries such as Malaysia, Indonesia, and Thailand, or possibly extending restrictions to overseas Chinese firms, although implementing such measures may prove to be more challenging, according to analysts.