As the United States explores stricter trade measures to restrict advanced chip technology from reaching China, Nvidia, the American semiconductor company, is reportedly developing a version of its new artificial intelligence chips to align with these regulations.
According to Reuters, Nvidia is designing the new Blackwell AI chips specifically for the Chinese market, in collaboration with a local distributor, Inspur. This chip, tentatively named the “B20,” is expected to begin shipping in the second quarter of 2025.
Nvidia has previously introduced three chips tailored to adhere to U.S. export regulations, including the H20, which saw a price reduction to compete against chips from the Chinese firm Huawei. Recent reports indicate that sales of the H20 are on the rise, with Nvidia projecting to sell over one million units in China this year, generating approximately $12 billion in revenue, despite ongoing trade restrictions. This anticipated sales figure nearly surpasses Huawei’s projections for its competing Ascend 910B chip, based on data from SemiAnalysis.
However, analysts from Jefferies have warned that the H20 chips might face new risks under additional U.S. trade regulations. During the annual assessment of semiconductor export controls in October, they indicated that it is highly probable the H20 could be prohibited from being sold in China. This prohibition could arise through a specific ban on the product, a reduction in the allowed computing power, or limitations on memory capacity.
Furthermore, there is a possibility that the U.S. may broaden its export restrictions to include semiconductor sales to other countries in the region, like Malaysia, Indonesia, and Thailand, or extend these controls to overseas Chinese companies, though implementing such measures would be more complex, according to the analysts.