As the U.S. explores stricter trade measures to restrict advanced chip technology from being supplied to China, Nvidia, the American chip manufacturer, is reportedly developing a version of its new artificial intelligence chips designed to align with these regulations.
According to reports from Reuters, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and distribute a chip tentatively named the “B20” within China. The B20 is anticipated to begin shipments in the second quarter of 2025.
Nvidia has already created three AI chips tailored to meet U.S. export requirements, including the H20. The company has reduced prices for the H20 due to underwhelming sales as it competes with domestic rival Huawei. Nevertheless, sales of the H20 have started to improve, with projections indicating that Nvidia may sell over a million units of this chip in China this year, translating to approximately $12 billion in revenue, despite the ongoing trade restrictions.
However, analysts from Jeffries have warned that Nvidia’s H20 chips could face consequences under potential further U.S. trade regulations. When the annual review of semiconductor export controls occurs in October, there is a strong possibility that the sale of H20 will be prohibited to China. This could be enacted through several methods: a direct product ban, a reduction in the computing power limit, or limits on memory capacity.
Additionally, experts suggest the U.S. might broaden export restrictions on chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, or even extend these controls to Chinese companies operating abroad, although such measures would be more challenging to enforce.