As the U.S. weighs stricter trade regulations to restrict advanced chip technology from reaching China, U.S.-based chip manufacturer Nvidia is reportedly developing a modified version of its new artificial intelligence chips to align with these rules.
According to sources familiar with the situation, Nvidia is creating a variant of its Blackwell AI chips specifically for the Chinese market, which is tentatively named the “B20.” The company intends to collaborate with a local distributor, Inspur, for the launch and sales of the chip in China.
The B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has not provided any comments on the matter.
Currently, Nvidia has three chips designed to meet U.S. export regulations, including the H20, which it has reduced prices for in response to sluggish sales while competing with domestic rival Huawei. Reports suggest that H20 sales have begun to improve, with Nvidia expected to sell over one million of these chips in China this year, amounting to approximately $12 billion, despite ongoing U.S. trade restrictions. This figure is nearly double Huawei’s anticipated sales for its Ascend 910B chip.
However, analysts from Jefferies have raised concerns that Nvidia’s H20 chips might be at risk due to possible future U.S. trade regulations. With the annual review of semiconductor export controls occurring in October, Jefferies analysts stated it is “highly likely” that the H20 could be prohibited from being sold to China. Such a ban could be enforced through various methods, including a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
Additionally, the U.S. may consider extending export controls on chips to other countries in the region, like Malaysia, Indonesia, and Thailand, or to overseas Chinese companies, although implementing such measures could be more complex.