As the United States contemplates stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chipmaker, is reportedly developing a version of its new artificial intelligence chips in compliance with these potential regulations.
According to sources cited by Reuters, Nvidia is creating a specialized version of its Blackwell AI chips for the Chinese market. The company is expected to collaborate with local distributor Inspur to introduce and market this chip, provisionally named the “B20,” in China.
The B20 is projected to begin shipping in the second quarter of 2025, as revealed by insider information. Nvidia has opted not to comment on the report.
Nvidia has already designed three chips to adhere to U.S. export controls, including the H20, which the company reduced prices for due to sluggish sales, aiming to compete with similar products from domestic rival Huawei. However, reports state that H20 sales are now on the rise, with Nvidia anticipated to sell over one million of its H20 chips in China this year, valued at approximately $12 billion, despite existing U.S. trade restrictions. These expected sales nearly double Huawei’s projections for its Ascend 910B chip.
However, analysts from Jefferies caution that Nvidia’s H20 chips may face challenges under potential new U.S. trade regulations. According to their assessment, it is quite probable that during the U.S. annual review of semiconductor export controls in October, a ban on the sale of H20 chips to China could be implemented. This ban could occur in one of three forms: a specific ban on the product, a reduction in the allowed computing power, or limitations on memory capacity.
Furthermore, the U.S. may consider broadening its export controls on chips supplied to other countries in the region, including Malaysia, Indonesia, and Thailand, or extending these controls to Chinese companies operating overseas, although implementation of such measures could prove difficult, analysts noted.