As the U.S. contemplates stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a prominent American chipmaker, is reportedly developing a version of its new artificial intelligence chips to align with these regulations.
According to unnamed sources cited by Reuters, Nvidia is planning to collaborate with the local distributor Inspur to introduce a chip provisionally named the “B20” in China. The launch is anticipated in the second quarter of 2025.
While Nvidia has created three chips specifically designed to meet U.S. export restrictions, including the H20, which saw price reductions due to sluggish sales against Chinese competitor Huawei, there are signs of growth in H20’s sales. Reports suggest that Nvidia is on track to sell over one million H20 chips in China this year, which could generate approximately $12 billion, despite existing U.S. trade limitations. This figure is nearly double the sales forecast for Huawei’s Ascend 910B chip.
However, there are concerns regarding the future of Nvidia’s H20 chips amidst potential new U.S. trade regulations. Analysts from Jefferies indicated that during the upcoming annual review of semiconductor export controls in October, it is highly likely that the H20 could be prohibited from sale to China. Such a ban might take various forms, including a product-specific ban, a reduction in the allowed computing power, or limitations on memory capacity.
Additionally, the U.S. might expand its export controls to chips sent to other regional countries, like Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although the latter could prove more challenging to enforce.