As the United States deliberates on implementing stricter trade restrictions to prevent advanced chip technology from being supplied to China, U.S.-based semiconductor company Nvidia is reportedly developing a version of its new artificial intelligence chips designed to comply with these regulations.
According to sources familiar with the matter, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and market a new chip, tentatively named the “B20,” specifically for the Chinese market. The B20 is anticipated to commence shipping in the second quarter of 2025.
Nvidia has already released three models designed to align with U.S. export regulations, including the H20 chip, which saw a price reduction due to sluggish sales as it competes with chips produced by Chinese firm Huawei. However, sales of the H20 have been increasing, and it is projected that Nvidia will sell over one million units of this chip in China this year, amounting to approximately $12 billion in revenue despite existing trade restrictions. This sales figure is nearly double Huawei’s forecast for its Ascend 910B chip.
Nonetheless, analysts from Jefferies have indicated that Nvidia’s H20 chips may soon face challenges under additional U.S. trade regulations. With the annual review of U.S. semiconductor export controls approaching in October, there is a strong likelihood that the sale of the H20 chip to China could be prohibited. The potential ban could be executed through various means, including a specific product ban, reduced computing power limits, or restrictions on memory capacity.
Furthermore, analysts noted that the U.S. might broaden its export limitations on chips sold to other regional countries such as Malaysia, Indonesia, and Thailand, or even apply similar controls to overseas Chinese firms, though the latter would be more complex to enforce.