The U.S. is evaluating stricter trade measures aimed at preventing advanced chip technology from being exported to China, prompting Nvidia, the American chipmaker, to reportedly develop a new version of its artificial intelligence chips to meet these regulations.
According to sources quoted by Reuters, Nvidia is working on a chip designed for the Chinese market, referred to as the “B20.” The company plans to collaborate with a local distributor, Inspur, for its launch and sales in China. The B20 is anticipated to begin shipping in the second quarter of 2025, although Nvidia has not commented on the reports.
Nvidia has already designed three chips that align with U.S. export restrictions, including the H20, which the company reduced prices for to remain competitive against offerings from the Chinese firm Huawei. Despite the challenges imposed by U.S. trade regulations, H20 sales in China have reportedly been rising, with forecasts suggesting Nvidia will sell over one million units this year, valued at approximately $12 billion, outpacing Huawei’s Ascend 910B chip sales expectations.
However, Jefferies analysts warn that Nvidia’s H20 chips could face new risks under upcoming U.S. export regulations. As part of the annual review of semiconductor export controls scheduled for October, there is a strong possibility that the H20 could be banned for sale to China. Potential methods for this ban could include implementing a product-specific prohibition, reducing computing power limits, or restricting memory capacity.
Additionally, the U.S. may choose to expand these export controls to cover chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although the latter would prove more complex to enforce, according to analysts.