As the U.S. weighs stronger trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a leading chipmaker based in the U.S., is reportedly developing a version of its new artificial intelligence chips that adhere to these forthcoming regulations.
According to sources familiar with the situation, Nvidia is focusing on a variant of its Blackwell AI chips tailored for the Chinese market, partnering with local distributor Inspur to introduce the chip, which is currently referred to as the “B20.” Reuters reports that the B20 is slated to start shipping in the second quarter of 2025, although Nvidia has not provided any official comment on the matter.
In the meantime, Nvidia has three chips that are designed to comply with existing U.S. export controls. Among these is the H20, which the company has recently reduced pricing on to strengthen its competitive position against Chinese rival Huawei in light of sluggish sales. However, sources indicate that sales of the H20 are now on the rise, with Nvidia expected to sell over one million units in China this year, generating approximately $12 billion, despite the prevailing trade restrictions. This projection nearly doubles Huawei’s anticipated sales for its Ascend 910B chip, as reported by the Financial Times using data from SemiAnalysis.
On a cautious note, analysts at Jeffries have indicated that Nvidia’s H20 chips may face challenges under additional U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export controls in October, analysts suggest there is a strong possibility that the H20 chip will be prohibited for sale to China. Potential approaches for such a ban could include product-specific prohibitions, reducing the computing power limits, or imposing caps on memory capacity.
Furthermore, there are considerations that the U.S. might broaden export restrictions on chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or potentially expand controls to overseas Chinese firms, although implementing such measures would pose significant challenges.