As the U.S. evaluates stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a major chip manufacturer based in the United States, is reportedly developing a version of its new artificial intelligence chips to adhere to these guidelines.
According to a report by Reuters, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and market a chip tentatively named the “B20” in China. This new Blackwell AI chip is anticipated to begin shipping in the second quarter of 2025.
Nvidia has previously released three chips designed specifically to align with U.S. export regulations, including the H20 model. The company has adjusted prices for the H20 due to sluggish sales in order to compete with domestic competitor Huawei. However, sales of the H20 have started to pick up, with projections indicating that Nvidia will sell over one million units in China this year, valued at approximately $12 billion, despite existing U.S. trade restrictions. This anticipated sales figure is nearly double what Huawei is expected to sell with its Ascend 910B chip.
Nevertheless, analysts from Jefferies have indicated that Nvidia’s H20 chips may face additional risks under future U.S. trade regulations. During the upcoming annual review of semiconductor export controls in October, it is highly likely that the sale of H20 chips to China will be banned, according to the analysts. Such a ban could be implemented in various ways, including product-specific bans, reductions in computing power limits, or restrictions on memory capacity.
Furthermore, the U.S. may consider extending export controls to chips sold to other countries in the region, like Malaysia, Indonesia, and Thailand, or to overseas Chinese companies, although the latter would be more challenging to enforce.