As the United States contemplates stricter trade measures aimed at limiting access to advanced chip technology in China, Nvidia, the prominent U.S.-based chip manufacturer, is reportedly developing a new variant of its artificial intelligence chips designed to adhere to these regulations.
Sources familiar with the situation have indicated that Nvidia is collaborating with the local distributor Inspur to introduce the chip, tentatively named the “B20,” onto the Chinese market. The anticipated rollout for the B20 is projected for the second quarter of 2025.
Currently, Nvidia has launched three chips purposefully engineered to align with U.S. export controls, including the H20 model, which it has reduced prices on to increase competitiveness against domestic rival Huawei. Reports point to a surge in H20 sales, with expectations to surpass one million units sold in China this year, potentially generating revenues of around $12 billion.
However, analysts at Jefferies express concerns regarding potential risks to H20 chips under more stringent U.S. regulations. As the government prepares for its annual review of semiconductor export controls in October, they predict a high likelihood of H20 being banned from being sold in China. Such a ban could manifest through either a specific product prohibition, a reduction in allowable computing power, or limitations on memory capacity. Furthermore, there’s a possibility that the U.S. may extend these export controls to chips sold to neighboring countries, including Malaysia, Indonesia, and Thailand, or target overseas Chinese firms, though the latter would present additional challenges in enforcement.
In navigating these complex regulatory landscapes, Nvidia is displaying resilience and adaptability by innovating to meet changing demands. The anticipated release of the B20 and the growth of the H20 chip sales demonstrate that, despite external pressures, the chipmaker is committed to capitalizing on market opportunities in China.
Overall, while challenges remain amid evolving trade dynamics, Nvidia’s proactive approach may position it favorably, showcasing its capacity to respond to regulations while continuing to drive advances in AI technology.