As the United States evaluates stricter trade regulations to restrict advanced chip technology from reaching China, Nvidia, a leading chip manufacturer based in the U.S., is reportedly developing a version of its new artificial intelligence chips to adhere to these rules.
According to reports from Reuters, which cite anonymous sources privy to the situation, Nvidia is collaborating with a local partner, Inspur, to introduce and distribute a chip in China, preliminarily named the “B20.” It is anticipated that the B20 will begin shipping in the second quarter of 2025. Nvidia has not provided any official comment on the matter.
The company currently has three chip models tailored to meet U.S. export regulations, including the H20, which it has recently reduced in price due to sluggish sales in order to better compete against products from domestic rival Huawei. Sources indicate that sales of the H20 are on the rise, with expectations that Nvidia will sell over one million units of this chip in China this year, generating approximately $12 billion in revenue, despite existing U.S. trade restrictions. Additionally, these projected sales are nearly double what Huawei anticipates for its Ascend 910B chip.
However, analysts from Jeffries have warned that Nvidia’s H20 chips may face challenges under new U.S. trade regulations. As the U.S. prepares for its annual evaluation of semiconductor export rules in October, they suggest that a ban on H20 sales to China is highly probable. Potential methods for this ban could include a product-specific ban, a reduction in the computing power cap, or limitations on memory capacity.
There is also the possibility that the U.S. could broaden its export restrictions on chips sold to other nations in the region, such as Malaysia, Indonesia, and Thailand, or to international Chinese enterprises, although analysts believe implementing such measures could be more challenging.