As the United States deliberates on stricter trade limitations to prevent advanced chip technology from being transferred to China, Nvidia, a U.S.-based semiconductor manufacturer, is reportedly developing a variant of its new artificial intelligence chips in compliance with these regulations.
According to unnamed sources cited by Reuters, Nvidia is crafting a version of its Blackwell AI chips specifically for the Chinese market. The company is collaborating with a local distributor, Inspur, to launch and market the chip, which is tentatively named the “B20,” in China.
The B20 is anticipated to begin shipping in the second quarter of 2025, as noted by a source close to the situation. Nvidia has chosen not to comment on these developments.
Nvidia has several chips that are designed to adhere to U.S. export regulations, including the H20, which saw price reductions due to lackluster sales as it competed against chips from domestic rival Huawei. However, sales of the H20 have reportedly started to pick up, with expectations to sell over one million units in China this year, valued around $12 billion, despite existing U.S. trade restrictions, according to a report by the Financial Times based on SemiAnalysis data. This projected sales figure for Nvidia is nearly double that of Huawei’s anticipated sales for its Ascend 910B chip.
Analysts at Jeffries have indicated that Nvidia’s H20 chips may face risks from potential new U.S. trade regulations. In their annual review of semiconductor export controls in October, it is “highly likely” that the H20 will be prohibited from being sold to China, they noted. This ban could manifest in several forms, including a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
Additionally, the U.S. may broaden its export controls to include chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, or apply these controls to overseas Chinese firms, though the latter option could pose more challenges in execution, according to analysts.