US chipmaker Nvidia is working on a version of its new flagship AI chips for the Chinese market that would be compatible with current US export controls, Reuters news agency exclusively reported on Monday, citing four sources familiar with the matter.
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according to the report A China version of Nvidia’s “Blackwell” chip series, which was introduced in March, is expected to go into series production later this year. The new processors combine two silicon sections that are just as large as the company’s previous offering. However, for certain tasks, such as answering chatbots, they are up to 30 times faster than their predecessor, according to Reuters.
According to the news agency, Nvidia will work with Inspur, one of its most important sales partners in China, to introduce and distribute the chip, tentatively called “B20”, in China. Deliveries are expected to begin in the second quarter of 2025, a source told Reuters. A public announcement from the US group is still pending.
US sanctions against China
Its background is the trade war between the US and China. In 2022, the US government tightened technology export controls for cutting-edge semiconductors. Washington has formally banned the export of four technologies needed for semiconductor manufacturing. Without explicitly naming China, this was justified by the protection of items “critical to national security”. In reality, the export controls are aimed at preventing breakthroughs in AI and supercomputing by China’s military. The toughest sanctions ever imposed against the Chinese semiconductor industry have largely prevented US and US-allied companies from collaborating with Chinese manufacturers in the development of chips with 5nm or higher technology.
Chinese tech companies are struggling with a much more limited supply of AI chips than their American competitors due to US export restrictions. For example, the most advanced chipsets from manufacturer Nvidia are out of reach for Chinese companies due to US sanctions. Recently there were reports that Bytedance, the Chinese TikTok company affected by US sanctions, is working with Broadcom to develop AI chips.
competitive market
In recent years, Nvidia has developed three chips specifically for the Chinese market. In order to allow sales to the US government, Nvidia had to lock down its AI processors for export to China. Nvidia is said to have released another slower version in the form of the H20, which is about half as fast as the H100. Earlier, there were already A800 and H800 with throttled interconnects to avoid US sanctions. The US then issued strict regulations. In turn, Chinese companies do not want throttled chips from Nvidia. As a result of US sanctions, China’s share of Nvidia’s sales fell from 26 percent in early 2022 to about 17 percent earlier this year. In addition, strict US export controls have helped China’s Huawei and other Chinese companies gain a foothold in the domestic market for advanced AI processors.
Reuters writes that a version of a chip from Nvidia’s Blackwell series for the Chinese market will support the American manufacturer’s efforts to fend off challenges from Chinese competition. However, it should be expected that the US government will further increase pressure on export controls of semiconductors. According to sources, the US wants the Netherlands and Japan to further restrict the export of chip manufacturing equipment to China. The Biden administration also plans to set strict limits on the export of advanced AI models that power generative AI systems such as ChatGPT. Last week, media in the US reported that the US government is considering a measure called the “Direct Foreign Product Rule,” which would allow Washington to block the sale of a product if it is made using US technology.
(AKN)
