As the United States contemplates stricter trade restrictions to prevent advanced chip technology from reaching China, the American semiconductor company Nvidia is reportedly developing a version of its latest artificial intelligence chip to align with these potential regulations.
According to reports from unnamed sources, Nvidia is creating a product known as the “B20” that is tailored for the Chinese market. The company is expected to collaborate with local distributor Inspur for the launch and sale of this chip.
The B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on these developments.
Nvidia currently offers three chips that are designed to meet U.S. export regulations, including the H20, which the company has reduced prices for due to lower sales, positioning it against domestic competitor Huawei. However, sources indicate that sales of the H20 are now on the rise. Nvidia is projected to sell over one million H20 chips in China this year, valued at around $12 billion, despite existing trade restrictions. This expected sales volume is nearly double that of Huawei’s sales forecasts for its Ascend 910B chip.
On the other hand, analysts at Jeffries warn that Nvidia’s H20 chips may face additional risks from upcoming U.S. trade regulations. According to their analysis, it is very likely that during the annual review of semiconductor export controls in October, the H20 could be barred from sale to China. This possible restriction could be implemented through various means, including a specific ban on the product, reduced computing power limits, or capping memory capacity.
Furthermore, the U.S. may consider expanding export controls on chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, or even extending these controls to overseas Chinese firms, although such steps could be more challenging to enforce, according to the analysts.