As the United States considers implementing stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.
According to reports, Nvidia is working on its Blackwell AI chips specifically for the Chinese market, partnering with local distributor Inspur to launch and market the chip, which is provisionally named the “B20.” Sources indicated that the B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on these developments.
Currently, Nvidia offers three chips designed to comply with U.S. export regulations, including the H20, which the company has reduced prices on in response to sluggish sales, competing against products from domestic rival Huawei. However, sources noted that sales for the H20 are increasing, with expectations that Nvidia will sell over one million of these chips in China this year, generating approximately $12 billion in revenue despite the ongoing trade restrictions, according to data from SemiAnalysis cited by the Financial Times. This projected sales figure is nearly double Huawei’s estimations for its Ascend 910B chip.
On the other hand, Nvidia’s H20 chips may face additional risks under upcoming U.S. trade policies. Analysts from Jefferies have indicated that during the U.S. annual review of semiconductor export controls in October, it is very likely that the H20 could be prohibited from sale to China. This potential ban could manifest in various forms, such as a product-specific ban, a reduction in the allowable computing power, or limits on memory capacity.
Moreover, there is a possibility that the U.S. could broaden the export controls to cover chips sold to other regional countries like Malaysia, Indonesia, and Thailand, or even extend these restrictions to overseas Chinese companies, although analysts believe this would be more challenging to implement.