As the United States explores stricter trade measures to prevent advanced chip technology from being delivered to China, Nvidia, a U.S.-based chip manufacturer, is reportedly developing a modified version of its new artificial intelligence chips to adhere to these regulations.
Reports from Reuters, citing unnamed sources, indicate that Nvidia is collaborating with the local distributor Inspur to launch and market the chip, which is provisionally named the “B20,” in the Chinese market. The B20 is anticipated to begin shipping in the second quarter of 2025, though Nvidia has chosen not to comment on this development.
Currently, Nvidia has three chips specifically designed to meet U.S. export control requirements, including the H20, which the company has recently reduced prices for in light of sluggish sales to compete with domestic rival Huawei. Despite the trade restrictions, sources noted that sales of the H20 are on the rise, with Nvidia projected to sell over one million H20 chips in China this year, amounting to approximately $12 billion. This projection nearly doubles Huawei’s expectations for its Ascend 910B chip, according to data from SemiAnalysis.
However, analysts from Jeffries have warned that Nvidia’s H20 chips may face additional risks from upcoming U.S. trade regulations. During its annual review of semiconductor export controls in October, it is considered “highly likely” that the H20 will be prohibited from being sold to China. Analysts outlined potential methods for this ban, including a “product specific ban, a reduction in the computing power cap, or a limit on memory capacity.”
Furthermore, the U.S. may also extend export restrictions on chips being sold to neighboring countries such as Malaysia, Indonesia, and Thailand, or impose controls on overseas Chinese firms, although this would present more challenges in execution, according to analysts.