As the United States moves toward implementing stricter trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a prominent chipmaker based in the U.S., is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.
According to Reuters, Nvidia is creating a version of its Blackwell AI chips specifically for the Chinese market, in collaboration with a local distribution partner, Inspur. The new chip, tentatively named the “B20,” is expected to begin shipping in the second quarter of 2025.
Nvidia has three chips that are designed to align with U.S. export controls, including the H20, which has seen a price cut due to lackluster sales caused by competition from China’s Huawei. However, reports indicate that H20 sales are now picking up, with Nvidia anticipated to sell over one million of these chips in China this year, generating approximately $12 billion, despite ongoing trade restrictions. This figure is notably close to double Huawei’s projected sales for its Ascend 910B chip.
However, analysts from Jefferies warn that Nvidia’s H20 chips could face challenges under potential new U.S. trade regulations. They indicated that during the upcoming annual review of semiconductor export controls in October, there is a significant chance the H20 may be prohibited for sale in China. Possible methods for such a ban could include a product-specific prohibition, reducing the computing power limit, or placing restrictions on memory capacity.
Additionally, the U.S. might extend its export controls on chips intended for other regional countries such as Malaysia, Indonesia, and Thailand, or even apply these controls to foreign Chinese businesses, though the latter would be more complex to enforce, according to analysts.