As the United States contemplates stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a leading American chipmaker, is reportedly developing a variant of its new artificial intelligence chips to adhere to these potential regulations.
Nvidia is reportedly collaborating with a local distribution partner, Inspur, to introduce and market the chip, which is tentatively named the “B20,” in the Chinese market. Shipping for the B20 is expected to commence in the second quarter of 2025, according to sources.
Nvidia currently has three chips developed specifically to meet U.S. export regulations, including the H20, which the company has reduced prices on in a bid to boost sales against domestic competitor Huawei. Reports suggest that sales of the H20 have started to recover, with expectations that Nvidia will sell over one million units in China this year, generating approximately $12 billion in revenue, despite ongoing U.S. trade restrictions. This anticipated sales figure is nearly double those expected for Huawei’s Ascend 910B chip.
However, analysts from Jefferies warn that Nvidia’s H20 chips could face increased risk under forthcoming U.S. trade regulations. With the annual review of semiconductor export controls approaching in October, the analysts indicated that it is likely the H20 may be prohibited from being sold to China. Such a ban could manifest in several forms, including a product-specific ban, reduction of the allowable computing power, or limitations on memory capacity.
There are also indications that the U.S. may widen export controls on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or potentially extend these measures to Chinese companies operating abroad, although implementing such actions may prove challenging.