As the United States contemplates implementing stricter trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a leading U.S.-based chip manufacturer, is reportedly taking proactive steps. The company is developing a new version of its advanced artificial intelligence chips that would comply with these regulations.
According to sources familiar with the situation, Nvidia is collaborating with a local distribution partner named Inspur to introduce the chip, which is tentatively designated the “B20,” into the Chinese market. This new chip is projected to begin shipping in the second quarter of 2025.
In addition to the B20, Nvidia has already introduced three other chip models designed specifically to adhere to U.S. export controls. Notably, the H20 chip has seen a reduction in price to remain competitive with local rival Huawei’s products. Despite the ongoing restrictions, reports indicate that sales for the H20 are on the rise, with Nvidia expected to sell over one million units, totaling around $12 billion, within China this year. This figure is nearly double the anticipated sales for Huawei’s Ascend 910B chip.
However, uncertainty looms over the future of these chips. Analysts from Jefferies have pointed out that Nvidia’s H20 chips may face additional trade restrictions during the U.S. government’s annual review of semiconductor export controls in October. Potential measures could include a specific ban on the H20 or adjustments to limits on computing power or memory capacity. The U.S. government might also extend export controls to other Southeast Asian countries or overseas Chinese companies, although the latter would present some implementation challenges.
Overall, while Nvidia is navigating the complexities of international trade laws and competition, its commitment to innovation and adaptation could position the company favorably in a rapidly evolving market landscape. The proactive development of compliant products like the B20 illustrates Nvidia’s resilience and strategic foresight in the face of regulatory challenges.
In summary, this situation underscores both the challenges and opportunities within the semiconductor industry, highlighting the delicate balance between regulation and technological progress. The emphasis on adaptability shows that companies can still thrive, even under stringent trade policies.