As the United States considers imposing stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.
According to sources familiar with the situation, Nvidia is set to collaborate with a local partner, Inspur, to introduce and market its chip, temporarily named the “B20,” specifically for the Chinese market. The B20 is anticipated to begin shipping in the second quarter of 2025.
Nvidia has already designed three chips compliant with U.S. export controls, including the H20, which has seen reduced prices to remain competitive against domestic rival Huawei. Reports indicate that H20 sales have begun to rise, with expectations to exceed one million units sold in China this year, valued at approximately $12 billion, despite ongoing trade restrictions. This projected sales volume nearly doubles Huawei’s expectations for its own Ascend 910B chip.
However, analysts from Jefferies have warned that Nvidia’s H20 chips may face challenges due to potential future U.S. trade regulations. In light of the U.S. annual review of semiconductor export controls scheduled for October, there is a strong likelihood that the H20 could be prohibited from being sold to China. This prohibition might occur through various means, including a targeted ban, adjusting computing power limits, or imposing memory capacity restrictions.
Additionally, the U.S. may expand its export controls to chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even apply these regulations to overseas Chinese companies, although such measures could prove more difficult to enforce.