As the United States weighs stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a prominent chipmaker based in the U.S., is reportedly developing a new version of its artificial intelligence chips that aligns with these regulations.
According to Reuters, Nvidia is collaborating with local partner Inspur to introduce and distribute its upcoming chip, provisionally named “B20,” in the Chinese market. This chip is anticipated to begin shipping in the second quarter of 2025, although Nvidia has not commented on the report.
Nvidia already offers three chips designed to meet U.S. export controls, including the H20, which saw price reductions due to sluggish sales and competition from Huawei’s domestic products. Nevertheless, sources indicate that sales of the H20 are on the rise, with expectations to exceed one million units sold in China this year, amounting to approximately $12 billion, despite existing trade restrictions. This projected sales figure nearly doubles Huawei’s anticipated sales for its Ascend 910B chip, as per data from SemiAnalysis.
However, analysts from Jefferies warn that the H20 chips face potential risks from impending U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export controls in October, Jefferies analysts predict a strong likelihood that the H20 will be prohibited from being sold to China. Such a ban may be enacted in various ways, including through specific product bans, reductions in the computing power cap, or limitations on memory capacity.
Moreover, the U.S. could potentially expand export restrictions on chips sold to other regional countries such as Malaysia, Indonesia, and Thailand, or even extend these controls to overseas Chinese companies, although implementing such measures might be more complex, according to analysts.