As the United States weighs new 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 latest artificial intelligence chips that will adhere to these regulations.
According to reports, Nvidia plans to create a variant of its Blackwell AI chips specifically for the Chinese market. The company is expected to collaborate with a local partner, Inspur, for the launch and distribution of the chip, which has been tentatively named the “B20.” Shipping of the B20 is anticipated to commence in the second quarter of 2025.
Nvidia has already designed three chips that comply with existing U.S. export controls, including the H20, which faced price reductions due to sluggish sales, particularly in competition with Chinese firm Huawei’s chips. However, sources indicate that sales of the H20 are on the rise, with projections suggesting that Nvidia could sell over one million H20 chips in China this year, translating to approximately $12 billion in revenue, despite ongoing trade restrictions. This expected sales figure far exceeds Huawei’s projected sales for its Ascend 910B chip.
Nevertheless, analysts from Jefferies have cautioned that Nvidia’s H20 chips might face future challenges from additional U.S. trade regulations. During the U.S. government’s annual review of semiconductor export controls in October, it is suggested that the H20 may be banned for sale to China. Potential methods for imposing such a ban could include implementing a product-specific restriction, adjusting the computing power limits, or capping memory capacity.
Furthermore, there is a possibility that the U.S. may expand its export controls to chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, or even extend restrictions to overseas Chinese firms, although the latter would be more complex to enforce, according to the analysts.