As the United States contemplates stricter trade measures to restrict advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chipmaker, is reportedly developing a new version of its AI chips tailored to comply with these regulations.
According to Reuters, Nvidia is collaborating with local distribution partner Inspur to introduce and market a chip, provisionally named the “B20,” in China. Reports indicate that the B20 is expected to begin shipping in the second quarter of 2025.
Nvidia has previously designed three chips to align with U.S. export controls, including the H20 chip, for which it recently reduced prices due to sluggish sales as it competes with Chinese rival Huawei. Sources mentioned that sales of the H20 chip are on the rise, with projections indicating Nvidia may sell over one million units in China this year, a figure valued at approximately $12 billion—this is nearly double Huawei’s sales expectations for its Ascend 910B chip, according to SemiAnalysis data.
However, Nvidia’s H20 chips could face challenges under potential new U.S. trade regulations. Jefferies analysts noted that during the upcoming annual review of U.S. semiconductor export controls, it is quite likely that the H20 may be prohibited from being sold to China. Such a ban could occur through several methods, including a specific product ban, a reduction in the computing power threshold, or limitations on memory capacity.
Additionally, the U.S. may extend export restrictions on chips destined for other regional countries like Malaysia, Indonesia, and Thailand or apply similar controls to overseas Chinese companies, although implementing such measures could prove more complex, analysts suggest.