As the United States considers implementing stricter trade restrictions aimed at preventing advanced chip technology from being delivered to China, Nvidia, the American chipmaker, is reportedly developing a version of its new AI chips that will comply with these regulations.
In collaboration with local distribution partner Inspur, Nvidia is set to launch the chip, initially referred to as the “B20,” specifically for the Chinese market. Sources indicate that shipments of the B20 are expected to commence in the second quarter of 2025, although Nvidia has refrained from making any official comments on the matter.
The company has already created three chip models that are engineered to align with U.S. export controls, including the H20 chip. To enhance competitiveness against domestic rival Huawei, Nvidia has reduced the prices of the H20 amid sluggish sales. Reports suggest that sales of the H20 are now picking up, with projections indicating that Nvidia could sell over one million units in China this year, translating to about $12 billion in revenue, despite existing trade restrictions.
However, analysts from Jefferies caution that the H20 chips could face additional risks following the U.S. annual review of semiconductor export controls scheduled for October. They assert that there is a significant likelihood that the H20 will be prohibited from being sold to China. Potential avenues for this ban include implementing a product-specific prohibition, reducing the computing power threshold, or capping memory capacity.
Furthermore, analysts indicate that the U.S. might expand its export restrictions to chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even to overseas Chinese firms, although the latter would be more challenging to enforce.