As the United States contemplates stronger trade restrictions aimed at preventing sophisticated chip technology from reaching China, Nvidia, a prominent U.S. chipmaker, is reportedly developing a compliant version of its latest artificial intelligence chips for the Chinese market.
According to reports from Reuters, Nvidia is collaborating with local partner Inspur to launch the new chip, tentatively named the “B20,” in China. Sources indicate that the B20 is expected to begin shipping in the second quarter of 2025.
Nvidia has already introduced three chips designed to align with U.S. export regulations, including the H20, which the company reduced prices for in response to sluggish sales in order to stay competitive against domestic rival Huawei. Recent reports suggest that sales of the H20 chips are on the rise, with Nvidia forecasted to sell over one million units in China this year, generating approximately $12 billion in revenue despite existing trade barriers. This projection nearly doubles Huawei’s anticipated sales for its Ascend 910B chip.
However, analysts from Jefferies have warned that Nvidia’s H20 chips may face challenges due to potential new U.S. trade restrictions. As the U.S. is set to conduct its annual review of semiconductor export controls in October, the analysts mentioned that there is a strong likelihood that the H20 could be prohibited from being sold to China. They noted that such a ban could manifest in various ways, including specific product bans, reductions in computing power limits, or restrictions on memory capacity.
Furthermore, the U.S. may expand export controls on chips destined for other countries in the region, including Malaysia, Indonesia, and Thailand, or extend the restrictions to overseas companies connected to China, though the latter could be more complex to enforce, according to the analysts.