As the United States contemplates stricter trade regulations to stop advanced chip technology from reaching China, Nvidia, a leading U.S.-based chip manufacturer, is reportedly developing a new version of its artificial intelligence chips to adhere to these upcoming rules.
According to a report from Reuters, Nvidia is preparing to launch a chip called the “B20” intended for the Chinese market, in collaboration with a local distribution partner, Inspur. The B20 is anticipated to begin shipping in the second quarter of 2025.
Nvidia has already introduced three chip models designed to meet U.S. export regulations, including the H20 chip, which it has price-adjusted to compete against products from domestic competitor Huawei. Recent reports indicate that sales of the H20 chip are on the rise, and Nvidia is projected to sell over one million units in China this year, potentially generating around $12 billion in revenue, despite existing U.S. trade restrictions. This projection nearly doubles Huawei’s expected sales for its Ascend 910B chip.
However, analysts at Jeffries have expressed concerns that Nvidia’s H20 chips might face challenges under upcoming U.S. trade regulations. They noted that during the annual review of semiconductor export controls in October, it is “highly likely” the H20 chip could be banned for sales to China. This ban might be implemented through various methods, such as a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
Additionally, the U.S. may also expand export controls on chips marketed to other regional nations like Malaysia, Indonesia, and Thailand or broaden these controls to overseas Chinese companies, although the latter would present more implementation difficulties, according to analysts.