As the United States contemplates implementing stricter trade regulations to restrict advanced chip technology from reaching China, U.S. semiconductor giant Nvidia is reportedly developing a version of its new artificial intelligence chips in response to these rules.
According to sources familiar with the situation, Nvidia is collaborating with local distributor Inspur to introduce and market the chip, which has been tentatively named the “B20,” specifically for the Chinese market. The B20 is anticipated to begin shipping in the second quarter of 2025.
Nvidia has already released three chips designed to adhere to U.S. export controls, including the H20, which the company reduced prices on to remain competitive against domestic rival Huawei due to sluggish sales. Nevertheless, sales of the H20 are reportedly on the rise, with expectations to sell over one million units in China this year, totaling approximately $12 billion in revenue, according to data from SemiAnalysis as cited by the Financial Times. This projection nearly doubles Huawei’s anticipated sales for its Ascend 910B chip.
On the other hand, analysts from Jeffries have warned that Nvidia’s H20 chips might face increased risks under new U.S. trade regulations. In their upcoming annual review of semiconductor export controls in October, they suggest that it’s quite likely the H20 could be prohibited from being sold to China. Such a ban could be enacted in various ways, including a specific product ban, a reduction in the allowable computing power, or limitations on memory capacity.
Furthermore, analysts indicate that the U.S. might not only tighten export controls on chips sold to China but could also extend these restrictions to other countries in the Asia-Pacific region, such as Malaysia, Indonesia, and Thailand, or even to Chinese companies operating abroad, although implementing these measures would pose significant challenges.