As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from reaching China, the American chip manufacturer Nvidia is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
According to Reuters, Nvidia is creating a variant of its Blackwell AI chips, known tentatively as the “B20,” specifically for the Chinese market. The company plans to partner with a local distributor, Inspur, to launch and market this chip in China.
Shipping of the B20 is anticipated to commence in the second quarter of 2025, as reported by a source to Reuters. Nvidia has not provided any comments on the matter.
Currently, Nvidia has three chip models designed to comply with U.S. export controls, including the H20, which the company reduced prices for in light of sluggish sales to compete with chips from domestic rival Huawei. Despite the trade restrictions, H20 sales are reportedly on the rise, with expectations to sell over one million units in China this year, generating around $12 billion. This figure is nearly double Huawei’s sales forecast for its Ascend 910B chip, according to data from SemiAnalysis cited by the Financial Times.
However, analysts from Jefferies have warned that the H20 chips may face risks under potential future U.S. trade regulations. During its annual review of semiconductor export controls in October, analysts suggest it is highly likely that the H20 will be prohibited for sale to China. Such a ban could be implemented in several ways, including through a specific product ban, reduction of the computing power cap, or limitations on memory capacity.
Furthermore, the U.S. may also broaden export controls on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even extend these regulations to overseas Chinese companies, though the latter would be more complex to enforce.