As the United States contemplates stricter trade measures to stop advanced chip technology from reaching China, Nvidia, the U.S.-based chip manufacturer, is reportedly developing a version of its latest artificial intelligence chips that aligns with these regulations.
According to reports from Reuters, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and sell a chip in China, provisionally named the “B20.” This new chip is expected to begin shipping in the second quarter of 2025. Nvidia has refrained from making any comments regarding these developments.
The chipmaker already has three products specifically designed to meet U.S. export control regulations, including the H20, which Nvidia has reduced prices for in response to sluggish sales, aiming to compete against domestic rival Huawei. However, sales of the H20 are reportedly on the rise, with sources indicating that Nvidia could sell over one million units of the H20 chip in China this year, generating approximately $12 billion, despite existing U.S. trade restrictions. This projection nearly doubles that of Huawei’s Ascend 910B chip sales expectations, according to data from SemiAnalysis.
At the same time, analysts at Jefferies have cautioned that Nvidia’s H20 chips could face additional risks under forthcoming U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export policies in October, there is a strong possibility that sales of the H20 could be prohibited in China. Analysts suggest that this ban could manifest through various methods, including a product-specific ban, stricter limits on computing power, or restrictions on memory capacity.
Furthermore, the U.S. may widen its export controls to chips sold to neighboring countries such as Malaysia, Indonesia, and Thailand, or potentially extend these controls to overseas Chinese enterprises, though the latter would present implementation challenges, according to industry analysts.