As the United States considers stricter trade measures 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 that adheres to these regulations.
According to sources familiar with the situation, Nvidia is collaborating with Inspur, a local distribution partner, to introduce and market a chip tentatively named the “B20” in China. This new chip is anticipated to begin shipping in the second quarter of 2025, although Nvidia has not provided any official comment on the matter.
Nvidia has already created three chips tailored to align with U.S. export controls, including the H20, which the company reduced in price due to sluggish sales, in order to maintain competitiveness against domestic rival Huawei. Reports indicate that H20 sales are now experiencing growth, with expectations to sell over one million units in China this year, generating approximately $12 billion in revenue despite existing U.S. trade limitations. This anticipated sales figure significantly surpasses Huawei’s expectations for its Ascend 910B chip.
However, analysts from Jeffries have warned that Nvidia’s H20 chips may face additional risks due to potential new U.S. trade rules. Following the annual review of semiconductor export controls scheduled for October, they predict a high likelihood that the H20 could be prohibited for sale to China. Possible forms of this ban could include product-specific restrictions, a reduction in the permitted computing power, or limitations on memory capacity.
Furthermore, analysts suggest that the U.S. might broaden export controls to chips intended for other regional nations, such as Malaysia, Indonesia, and Thailand, or extend these restrictions to overseas Chinese companies, though the latter option may be more complex to enforce.