As the United States evaluates stricter trade restrictions to hinder the flow of advanced chip technology to China, Nvidia, a leading U.S. chipmaker, is reportedly developing a new version of its artificial intelligence chips to meet these regulations. According to sources familiar with the matter, Nvidia is collaborating with Chinese distributor Inspur to introduce the chip, provisionally named the “B20,” into the Chinese market.
Shipping for the B20 is anticipated to begin in the second quarter of 2025. Nvidia has not provided any comments regarding these developments.
Additionally, Nvidia has three chip models specifically designed to adhere to U.S. export controls, including the H20. The company has reduced prices for the H20 due to weak sales, aiming to compete with its domestic rival, Huawei. However, reports indicate that sales of the H20 have started to pick up, with Nvidia projected to sell over one million units in China this year, generating approximately $12 billion in revenue, despite ongoing U.S. trade restrictions. This anticipated sales figure is nearly double that of Huawei’s expected sales for its Ascend 910B chip.
Nonetheless, analysts from Jeffries have cautioned that Nvidia’s H20 chips may face risks under additional U.S. trade regulations. During the annual assessment of U.S. semiconductor export controls in October, there is a strong possibility that the H20 may be prohibited for sale to China. This ban could be enacted through various means, such as a specific product ban, tightening restrictions on computing power, or limiting memory capacity.
Furthermore, the U.S. may also consider extending export controls on chips sold to neighboring countries, including Malaysia, Indonesia, and Thailand, or to overseas Chinese enterprises, although analysts suggest that implementing such measures would be more challenging.