As the United States considers implementing stricter trade regulations to prevent the export of advanced chip technology to China, Nvidia, a prominent chipmaker based in the U.S., is reportedly developing a version of its new artificial intelligence (AI) chips intended to meet these regulations.
Nvidia is working on a new AI chip, tentatively named the “B20,” which will be marketed specifically for the Chinese market in collaboration with local distribution partner Inspur. According to sources familiar with the situation, the B20 is expected to begin shipping in the second quarter of 2025.
Nvidia has already introduced three chips that are designed to adhere to U.S. export control laws, including the H20, which the company reduced prices for due to weak sales, as it sought to compete against Huawei’s domestic offerings. However, it has been reported that sales of the H20 chips are now increasing, and Nvidia is projected to sell over one million units in China this year, generating approximately $12 billion in revenue, despite ongoing U.S. trade restrictions.
Nonetheless, the H20 chips may face new challenges under potential future U.S. trade regulations. Analysts from Jeffries have suggested that during the annual review of U.S. semiconductor export controls in October, it is likely that the H20 could be prohibited from being sold in China. Such a ban could be enforced through various measures, including specific product bans or modifying existing limits on computing power and memory capacity.
Additionally, the U.S. may consider extending export controls to chips sold in other countries in the region, including Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although implementing these measures could prove more complex.