As the U.S. considers implementing stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, a leading U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to meet these regulatory requirements.
Nvidia is reportedly collaborating with a local distribution partner, Inspur, to introduce a chip tentatively named the “B20” in the Chinese market, according to sources quoted by Reuters. This new version is expected to begin shipping in the second quarter of 2025. Nvidia has not provided any comments regarding this development.
The company currently offers three chip models that align with U.S. export control measures, including the H20. To boost sales amid weak demand, Nvidia reduced prices for the H20, which competes with products from Chinese competitor Huawei. Despite initial challenges, sales of the H20 are reported to be increasing. Analysts anticipate that Nvidia will sell over one million H20 chips in China this year, generating approximately $12 billion in revenue, even in light of existing trade restrictions.
However, analysts from Jeffries warn that the H20 chips may face complications due to potential new U.S. trade regulations. During the annual review of semiconductor export controls scheduled for October, there is a strong possibility that the H20 could be prohibited from being sold to China. Potential restrictions could be implemented in several ways, including a specific product ban, lowering the computing power limits, or imposing limits on memory capacity.
Moreover, the U.S. may consider expanding export controls on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even extending controls to overseas Chinese companies, although the latter could present implementation challenges.