As the United States contemplates implementing stricter trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to comply with these regulations.
Nvidia is focusing on its Blackwell AI chip series, specifically creating a variant for the Chinese market known as the “B20,” as reported by Reuters, which cited sources familiar with the situation. The company plans to collaborate with a local distribution partner, Inspur, to introduce and market the B20 in China.
Shipping for the B20 is projected to begin in the second quarter of 2025. Nvidia has chosen not to comment on the matter.
The chipmaker has already developed three chips that meet U.S. export control requirements, including the H20. This particular chip saw a price reduction to compete against similar products from the Chinese company Huawei, although its sales have recently increased. Sources indicated that Nvidia is anticipated to sell over one million H20 chips in China this year, which would amount to approximately $12 billion despite existing U.S. trade limitations. This expected sales figure is nearly double the anticipated sales for Huawei’s Ascend 910B chip, according to data from SemiAnalysis.
However, Jefferies analysts warned that Nvidia’s H20 chips may face challenges due to potential new U.S. trade regulations. In light of the upcoming annual review of U.S. semiconductor export controls in October, they suggested a strong possibility that the H20 could be banned for sale to China. Such a ban could manifest in several ways, including a direct product ban, a reduction in the computing power cap, or limitations on memory capacity.
Additionally, the U.S. may broaden its export controls to chips sold to other countries in the region, like Malaysia, Indonesia, and Thailand, or to Chinese companies operating overseas. However, the latter option would be more complex to enforce, according to analysts.