As the U.S. contemplates stricter trade restrictions to prevent advanced chip technology from being exported to China, Nvidia, a major American semiconductor company, is reportedly developing a new version of its artificial intelligence chips to align with these regulations.
According to reports, Nvidia is creating a variant of its Blackwell AI chips specifically for the Chinese market, working with local distribution partner Inspur to introduce and sell the chip, temporarily named the “B20.” This new chip is anticipated to begin shipping in the second quarter of 2025.
Nvidia has already designed three chips that meet U.S. export control requirements, including the H20 chip, which the company recently reduced in price to boost sales in response to competition from China’s Huawei. Despite initial slow sales, H20 shipments have reportedly started to increase, with projections indicating that Nvidia will sell over one million H20 chips in China this year, potentially generating around $12 billion in revenue, according to data from SemiAnalysis. This expectation nearly doubles Huawei’s predicted sales for its Ascend 910B chip.
However, analysts from Jefferies have raised concerns that the H20 chips may face additional restrictions under forthcoming U.S. trade regulations. In their annual review of semiconductor export rules scheduled for October, analysts foresee a strong possibility of a ban on H20 sales to China. Potential pathways for this ban could include a specific product ban, a reduction in the allowable computing power, or limitations on memory capacity.
Additionally, there are suggestions that the U.S. might broaden its export regulations for chips sold to other countries in Southeast Asia, like Malaysia, Indonesia, and Thailand, or even extend restrictions to overseas Chinese entities, although implementing such measures could be complex.