As the U.S. evaluates stricter trade measures to restrict advanced chip technology from reaching China, Nvidia, a leading chip manufacturer based in the U.S., is reportedly developing an adapted version of its new artificial intelligence chips to adhere to these regulations.
According to Reuters, Nvidia is creating a variant of its Blackwell AI chips tailored for the Chinese market with the help of a local distribution partner, Inspur. This chip is provisionally named the “B20” and is anticipated to commence shipping in the second quarter of 2025.
Nvidia has developed three types of chips that align with U.S. export controls, including the H20, which the company has lowered prices on due to sluggish sales while competing against products from local rival Huawei. However, sales of the H20 have begun to improve, as indicated by sources. It is projected that Nvidia will sell over one million H20 chips in China this year, translating to about $12 billion, despite ongoing U.S. trade restrictions, according to the Financial Times and SemiAnalysis data. Nvidia’s anticipated sales are nearly double those of Huawei’s Ascend 910B chip.
In the meantime, Nvidia’s H20 chips may face potential risks under new U.S. trade regulations, as highlighted by analysts from Jeffries. During the U.S.’s annual review of semiconductor export controls planned for October, it is “highly likely” that the H20 could be prohibited from being sold to China, the analysts noted. This potential ban could occur through various methods, including a “product specific ban, reducing the computing power limit, and/or imposing restrictions on memory capacity.”
Additionally, the U.S. might broaden its export controls on chips sold to neighboring countries like Malaysia, Indonesia, and Thailand or even extend these controls to overseas Chinese companies, although implementing such measures could be more challenging, according to analysts.