As the United States considers stricter trade sanctions to block advanced chip technology from reaching China, Nvidia, a U.S.-based semiconductor manufacturer, is reportedly developing a version of its new artificial intelligence chips that will comply with these regulations.
According to sources familiar with the situation, Nvidia is creating a separate version of its Blackwell AI chips for the Chinese market, working alongside local distributor Inspur to launch a product tentatively named the “B20” in China. The B20 is expected to begin shipping in the second quarter of 2025.
Nvidia has already produced three chips designed to meet U.S. export constraints, including the H20, which the company has lowered prices on due to sluggish sales in order to compete with domestic rival Huawei. Nevertheless, sales of the H20 are reportedly on the rise, with Nvidia anticipated to sell over one million units in China this year, generating approximately $12 billion in revenue, despite existing U.S. trade limitations. This sales figure is nearly double Huawei’s predictions for its Ascend 910B chip.
However, analysts from Jefferies have indicated that Nvidia’s H20 chips could face challenges from potential new U.S. trade measures. With the annual review of U.S. semiconductor export controls set for October, there is a significant possibility that the H20 may be prohibited from being sold in China. Such a ban could be implemented in several ways, including a specific product ban, a reduction in the allowed computing power, or a restriction on memory capacity.
Additionally, U.S. authorities may expand export limitations on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or could extend these restrictions to overseas Chinese companies, although the latter option would be more complicated to enforce, as noted by analysts.