As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from being exported to China, U.S.-based semiconductor manufacturer Nvidia is reportedly developing a variant of its new artificial intelligence chips to adhere to these regulations.
According to sources familiar with the situation, Nvidia is designing a version of its latest Blackwell AI chips specifically for the Chinese market. The company plans to collaborate with local distributor Inspur for the launch and distribution of this chip, which is tentatively named the “B20.” It is anticipated that the B20 will begin shipping in the second quarter of 2025.
Nvidia has already created three chips intended to comply with U.S. export controls, including the H20, for which it has adjusted pricing due to sluggish sales in order to compete with domestic rival Huawei. However, sales of the H20 are reportedly increasing, with expectations that Nvidia will sell over one million units in China this year, valued at approximately $12 billion. This is occurring despite existing U.S. trade restrictions and is nearly double Huawei’s forecasted sales for its Ascend 910B chip.
Meanwhile, analysts from Jefferies have warned that Nvidia’s H20 chips could face additional challenges under forthcoming U.S. trade regulations. They suggest that during the annual review of semiconductor export controls in October, it is “highly likely” that the H20 will be prohibited from being sold to China. This ban could manifest in various forms, including a specific product ban, a reduction in the permissible computing power cap, or a limitation on memory capacity.
Furthermore, there is potential for the U.S. to broaden export controls on chips sold to other countries in Southeast Asia, such as Malaysia, Indonesia, and Thailand, or to apply restrictions to foreign Chinese companies, although such measures may be more complex to enforce.