As the United States contemplates stricter trade restrictions aimed at preventing 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 designed to adhere to these regulations.
According to sources familiar with the situation, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and market a new chip, provisionally named the “B20,” in China. This initiative comes as the chipmaker seeks to navigate the changing landscape of trade rules.
The B20 is anticipated to begin shipping by the second quarter of 2025, though Nvidia has not provided any official comments regarding this development.
Nvidia already has three chips tailored to comply with U.S. export controls, including the H20, which has seen price reductions amid a competitive market, particularly against products from local rival Huawei. However, reports indicate that sales of the H20 are on the rise, with projections suggesting Nvidia could sell over one million units in China this year, amounting to approximately $12 billion in revenue, despite ongoing U.S. trade limitations. This expected sales volume is nearly double what Huawei anticipates for its Ascend 910B chip.
In light of potential tightening of U.S. trade regulations, analysts from Jefferies have noted that Nvidia’s H20 chips might face challenges under forthcoming U.S. policies. During the annual review of semiconductor export controls in October, it is likely that the H20 may be prohibited for sale to China, through methods such as specific product bans, reductions in computing power limits, or restrictions on memory capacity.
Furthermore, the U.S. may consider extending these export controls beyond China to other countries in the region, including Malaysia, Indonesia, and Thailand, or to overseas Chinese companies, although this eventuality poses greater difficulties in implementation, according to industry analysts.