As the United States considers stricter trade measures to restrict advanced chip technology from reaching China, Nvidia, a leading U.S.-based chip manufacturer, is reportedly developing a version of its latest artificial intelligence chips to adhere to these regulations.
According to reports, Nvidia is collaborating with a local distributor, Inspur, to create and market the chip, tentatively named the “B20,” specifically for the Chinese market. Sources indicate that shipments of the B20 are expected to commence in the second quarter of 2025. Nvidia has not provided any comments on the matter.
The company has already designed three chips to align with U.S. export regulations, which include the H20 chip. In response to sluggish sales, Nvidia has reduced the price of the H20 to better compete with Huawei’s domestic offerings. However, reports suggest that sales of the H20 are now increasing, with expectations to ship over one million units in China this year, translating to approximately $12 billion in revenue despite existing U.S. trade restrictions. This projected performance is nearly double what Huawei anticipates for its Ascend 910B chip.
In light of potential future U.S. trade regulations, analysts from Jefferies have warned that Nvidia’s H20 chips could face challenges. As the U.S. prepares for its annual review of semiconductor export controls in October, there is a strong possibility that the H20 might be prohibited from being sold to China. Analysts have identified three possible avenues for such a ban: a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
The U.S. may also consider extending its export controls to additional countries in the region, such as Malaysia, Indonesia, and Thailand, or to Chinese companies operating overseas, although the latter would present more implementation difficulties, according to analysts.