As the United States explores stricter trade limitations to restrict advanced chip technologies from reaching China, the American semiconductor company Nvidia is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
Nvidia is said to be creating a version of its Blackwell AI chips specifically for the Chinese market. The company is reportedly collaborating with a local distributor, Inspur, to introduce and market the chip, tentatively named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on these developments.
Additionally, Nvidia has three chips designed to align with U.S. export regulations, including the H20, which saw price reductions to compete with local rival Huawei amid sluggish sales. However, sales of the H20 are reportedly on the rise. Sources indicate that Nvidia is projected to sell over one million H20 chips in China this year, valued at approximately $12 billion, despite current U.S. trade restrictions. This sales forecast significantly surpasses Huawei’s expectations for its Ascend 910B chip.
On another note, Nvidia’s H20 chips could face challenges under potential new U.S. trade measures. Analysts from Jefferies suggest that during the upcoming annual review of semiconductor export controls in October, it is “highly likely” that the H20 will be prohibited for sale to China. This restriction could manifest in various forms including a direct ban on the product, lowering the computing power threshold, or imposing limits on memory capacity.
Moreover, the U.S. government may consider expanding export controls on chips sold to other nations in the region such as Malaysia, Indonesia, and Thailand, or extending these rules to overseas Chinese companies, although implementing such measures could prove complex.