As the United States contemplates stricter trade restrictions aimed at preventing advanced chip technology from being supplied to China, U.S.-based semiconductor manufacturer Nvidia is reportedly developing a version of its latest artificial intelligence chips to adhere to these new regulations.
According to sources familiar with the situation, Nvidia is working on a chip referred to as the “B20” specifically for the Chinese market, in collaboration with local distribution partner, Inspur. The anticipated launch and sale of the B20 is expected around the second quarter of 2025.
Nvidia has already introduced three chips designed to meet U.S. export control standards, including the H20, for which the company recently lowered prices to compete against domestic rival Huawei. Reports indicate that sales of the H20 are on the rise, with projections suggesting that Nvidia will sell over one million H20 chips in China this year, amounting to approximately $12 billion, despite existing trade restrictions. This sales forecast nearly doubles Huawei’s expectations for sales of its Ascend 910B chip.
However, analysts at Jefferies warn that Nvidia’s H20 chips may face challenges under potential new U.S. trade regulations. As part of the annual review of semiconductor export controls in October, there is a strong likelihood that the H20 could be banned from sale to China. This ban could take various forms, such as a product-specific restriction, a reduction in allowable computing power, or limitations on memory capacity.
Furthermore, the U.S. may consider expanding its export controls to encompass chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or even extending these restrictions to overseas Chinese companies, although the latter could pose implementation difficulties.