As the United States explores more stringent trade measures aimed at preventing advanced chip technology from reaching China, U.S.-based semiconductor manufacturer Nvidia is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.
Nvidia is said to be creating a variant of its Blackwell AI chips specifically for the Chinese market, collaborating with local distributor Inspur to introduce and sell the chip, which is provisionally named the “B20.” According to sources, the B20 is anticipated to start shipping in the second quarter of 2025. Nvidia has not provided any comments on this matter.
The company has already designed three chips to comply with U.S. export regulations, including the H20 chip, which Nvidia has reduced prices for following lackluster sales in order to compete with Chinese rival Huawei. However, reports indicate that H20 sales are starting to pick up. Estimates suggest that Nvidia could sell over one million H20 chips in China this year, amounting to approximately $12 billion, despite existing U.S. trade barriers. This sales figure nearly doubles Huawei’s expectations for its Ascend 910B chip.
On the other hand, Nvidia’s H20 chips may face increased scrutiny under potential future U.S. trade regulations, according to analysts from Jefferies. During the annual review of U.S. semiconductor export controls in October, there is a strong likelihood that the H20 could be prohibited from being sold to China. Analysts mentioned that a ban could be implemented through various means, such as a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
Furthermore, the U.S. might broaden its export control measures to include chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, as well as extend these controls to overseas Chinese firms, although such an expansion may prove more challenging to enforce.