As the U.S. evaluates stricter trade restrictions to curb the transfer of advanced chip technology to China, Nvidia, a prominent American chipmaker, is reportedly developing a version of its cutting-edge artificial intelligence chips tailored to meet these new regulations. According to sources, Nvidia is collaborating with a local partner, Inspur, to launch its planned chip, referred to as the “B20,” specifically for the Chinese market.
The B20 is anticipated to begin shipping by the second quarter of 2025. Currently, Nvidia is focusing on compliance with existing U.S. export controls, having already designed three chips—one of which is the H20. In response to declining sales against competitors like Huawei, Nvidia has reduced prices for the H20. Nevertheless, reports indicate that sales of this chip are now on the rise, with expectations of over one million shipments to China this year, translating to roughly $12 billion in value.
However, Nvidia’s H20 chips may face challenges ahead. Analysts from Jefferies predicted that during the U.S. government’s upcoming annual review in October, there is a strong likelihood that this chip could be banned from sale to China. Possible methods for enforcing this ban might include product-specific prohibitions or restrictions on computing power and memory capacity.
Moreover, the U.S. may decide to broaden its export controls to affect chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even extend them to overseas Chinese firms, although implementing these measures could prove more complex.
In summary, while the landscape is challenging for semiconductor manufacturers navigating U.S.-China relations, Nvidia’s ongoing adaptation and strategic planning reflect resilience in a highly competitive market. The development of the B20 chip could enable Nvidia to maintain its foothold in China, proving its capability to innovate and respond swiftly to regulatory environments. This adaptability may not only solidify Nvidia’s market position but also showcase the potential for technology firms to thrive even under stringent trade conditions.