As the United States contemplates stricter trade measures to prevent the transfer of advanced chip technology to China, Nvidia, a major chip manufacturer based in the U.S., is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
Nvidia is said to be creating a variant of its Blackwell AI chips specifically for the Chinese market, with plans to collaborate with local distributor Inspur for the launch and sale of this chip, which is tentatively named the “B20.” Sources indicate that the B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has opted not to comment on these developments.
In addition to the new chip, Nvidia has three existing models designed to meet U.S. export controls, including the H20 chip. The company has reportedly reduced prices for the H20 amidst declining sales, aiming to compete with products from its Chinese rival, Huawei. Recent reports indicate that H20 sales are now increasing, with Nvidia expected to sell over one million units in China this year, amounting to approximately $12 billion, despite the ongoing trade restrictions. This figure nearly doubles Huawei’s projected sales for its Ascend 910B chip, according to data from SemiAnalysis.
However, analysts from Jefferies have warned that Nvidia’s H20 chips may face challenges under impending U.S. trade regulations. With the annual review of semiconductor export controls approaching in October, there is a strong likelihood that sales of the H20 to China could be prohibited. Analysts have outlined potential routes for this ban, including specific product restrictions, adjustments to computing power limits, or caps on memory capacity.
Additionally, the U.S. may broaden export restrictions to encompass chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or even extend controls to overseas Chinese enterprises, though the latter could prove more difficult to implement.