As the U.S. contemplates stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a leading American chip manufacturer, is reportedly developing a version of its new artificial intelligence chips tailored to adhere to these regulations.
According to sources familiar with the situation, Nvidia is working on a chip, tentatively named the “B20,” which is expected to cater to the Chinese market. To facilitate this, Nvidia will partner with a local distributor, Inspur, for the launch and sales of the chip. The B20 is projected to begin shipping in the second quarter of 2025.
Nvidia has designed three chips specifically to meet U.S. export control requirements, including the H20, which it recently discounted to boost sales against local competitor Huawei. Reports indicate that H20 sales are now increasing, and Nvidia could sell over one million units of these chips in China this year, amounting to approximately $12 billion, despite existing trade restrictions. This figure is nearly twice Huawei’s expected sales of its Ascend 910B chip, according to market analysis data.
However, analysts from Jefferies have warned that the H20 chips may face challenges under possible future U.S. trade regulations. The U.S. is set to conduct its annual review of semiconductor export controls in October, and there is a significant chance that H20 will face a sales ban to China. This ban could be implemented through various methods, such as a specific product ban, a reduction in the computing power threshold, or limitations on memory capacity.
In addition, there is a possibility that the U.S. could broaden its export restrictions to include chips sold to other nations in the region, like Malaysia, Indonesia, and Thailand, or extend these controls to overseas Chinese firms, though the latter would be more complex to enforce, according to analysts.