As the United States considers implementing stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a U.S.-based semiconductor manufacturer, is reportedly developing a version of its new artificial intelligence chips that aligns with these regulations.
According to sources familiar with the matter, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and market a chip tentatively named the “B20” in China. The B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has not commented on these developments.
The company currently offers three chips designed specifically to meet U.S. export control standards. This includes the H20 chip, for which Nvidia significantly reduced prices amid declining sales to remain competitive against local rival Huawei. However, reports indicate that sales of the H20 chip are now on the rise, with expectations to sell over one million units in China this year, potentially generating around $12 billion in revenue, despite ongoing trade restrictions. This projected sales figure is nearly double Huawei’s expectations for its Ascend 910B chip.
In addition, the H20 chips could face further risks under new U.S. trade regulations, as noted by analysts from Jefferies. They suggest that during the annual review of U.S. semiconductor export controls scheduled for October, it is highly probable that the H20 will be prohibited from being sold to China. Possible methods for this ban could include a specific product ban, a reduction in the computing power cap, or limitations on memory capacity.
Furthermore, analysts believe that the U.S. may also expand its export controls to chips sold to other countries in the region such as Malaysia, Indonesia, and Thailand, or may extend these controls to Chinese companies operating overseas, although such measures would be more challenging to implement.