As the United States considers implementing stricter trade restrictions to limit the flow of advanced chip technology to China, U.S.-based chip manufacturer Nvidia is reportedly developing a version of its new artificial intelligence chips in line with these regulations.
Nvidia is said to be collaborating with local partner Inspur to introduce and market the chip, which is tentatively named the “B20,” specifically for the Chinese market, according to unnamed sources. The B20 is anticipated to begin shipping in the second quarter of 2025.
The chipmaker currently has three chips designed to meet U.S. export compliance, including the H20, which Nvidia has reduced prices for amid sluggish sales to remain competitive against domestic rival Huawei. However, reports indicate that sales of the H20 are beginning to rise, with Nvidia projected to sell over one million units in China this year, amounting to around $12 billion, despite ongoing U.S. trade restrictions.
Moreover, there are concerns that Nvidia’s H20 chips may face additional risks due to possible future U.S. trade regulations. Analysts at Jefferies suggest that during the upcoming annual review of U.S. semiconductor export controls in October, a ban on H20 sales to China is “highly likely.” This could be enforced through various means, such as product-specific bans, reductions in computing power limits, or restrictions on memory capacity.
Additionally, the U.S. may contemplate broadening its export controls to encompass chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, or even extending these restrictions to Chinese companies operating overseas, although implementing such measures could prove more challenging.