As the United States contemplates stricter trade measures to restrict advanced chip technology from being supplied to China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
Nvidia is said to be collaborating with a local partner, Inspur, to distribute and market a chip tentatively named the “B20” specifically for the Chinese market. This information was revealed by Reuters, which cited unnamed sources familiar with the situation. The B20 is anticipated to begin shipping in the second quarter of 2025, although Nvidia has not commented on these developments.
The company currently has three chip models designed to comply with U.S. export restrictions, including the H20, which Nvidia has lowered prices for in response to weak sales in order to compete with local rival Huawei. Sources indicate that H20 sales are now on the rise, with projections suggesting that Nvidia may sell over one million of these chips in China this year, generating approximately $12 billion in revenue despite ongoing trade limitations. This expected figure is nearly double Huawei’s anticipated sales for its Ascend 910B chip.
However, Jefferies analysts caution that Nvidia’s H20 chips may face additional risks under upcoming U.S. trade regulations. With the annual review of semiconductor export controls scheduled for October, analysts predict a high likelihood that the H20 will be prohibited from being sold to China. Potential methods for imposing such a ban could include product-specific restrictions, adjustments to computing power limits, or limitations on memory capacity.
Furthermore, analysts warn that the U.S. may choose to broaden export controls to include chips sold to neighboring countries such as Malaysia, Indonesia, and Thailand or extend these restrictions to overseas Chinese companies, although the latter option may present implementation challenges.