As the United States considers imposing stricter trade restrictions to prevent advanced chip technology from being supplied to China, the American chip manufacturer Nvidia is reportedly developing a version of its new artificial intelligence chips that meets these regulations.
Nvidia is working on a product named the “B20,” designed for the Chinese market, in collaboration with a local distribution partner, Inspur, as reported by Reuters. The B20 is expected to begin shipping in the second quarter of 2025, although Nvidia has chosen not to comment on the matter.
The company currently has three chips designed to adhere to U.S. export controls, including the H20 chip, which Nvidia has lowered prices for in response to weak demand, competing with products from the Chinese firm Huawei. Reports indicate that H20 sales are now increasing, with Nvidia projected to sell over one million units in China this year, generating approximately $12 billion in revenue despite the ongoing trade restrictions. This figure is nearly double the anticipated sales for Huawei’s Ascend 910B chip, according to SemiAnalysis data.
However, analysts from Jefferies suggest that Nvidia’s H20 chips may face future risks under additional U.S. trade regulations. In the upcoming annual review of semiconductor export controls in October, there is a strong possibility that the H20 could be prohibited from being sold to China. Such a ban could be implemented in several ways, including a product-specific ban, a reduction in the allowable computing power, or limitations on memory capacity.
Furthermore, the U.S. may consider extending export controls on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or potentially to overseas Chinese companies, though the latter option would pose greater challenges, according to industry analysts.