As the U.S. considers implementing stricter trade measures to hinder the flow of advanced chip technology to China, Nvidia, a prominent chip manufacturer based in the U.S., is reportedly developing a version of its new artificial intelligence chips that aligns with these regulations.
According to reports from Reuters, Nvidia is collaborating with a local partner, Inspur, to launch and market a chip tentatively named the “B20” specifically for the Chinese market. The B20 is projected to begin shipping in the second quarter of 2025.
Nvidia has already introduced three chips designed to meet U.S. export controls, including the H20 chip, which the company reduced prices on in response to sluggish sales as it competes with domestic rival Huawei. Despite initial challenges, the sales of the H20 chip are said to be on the rise, with expectations to surpass one million units sold in China this year, translating to approximately $12 billion in sales, according to SemiAnalysis data cited by the Financial Times. This figure nearly doubles Huawei’s projected sales of its Ascend 910B chip.
However, analysts from Jefferies indicate that Nvidia’s H20 chips may face risks under potential new U.S. trade regulations. With the annual review of semiconductor export controls set for October, they predict it is highly probable that the H20 chip will be prohibited for sale to China. Potential paths for the ban could include specific product bans, tightening computing power thresholds, or limiting memory capacity.
In addition to these concerns, the U.S. may expand its export limitations on chips to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even extend these controls to overseas Chinese firms, though the latter would prove more complex to execute, according to analyst assessments.