As the United States evaluates stricter trade regulations to limit the export of advanced chip technology to China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips that adheres to these impending rules.
According to sources familiar with the situation, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and market its new chip, referred to as the “B20,” specifically for the Chinese market. The B20 is anticipated to begin shipping in the second quarter of 2025, although Nvidia has not issued any official comments on the matter.
Nvidia currently has three chips designed to meet U.S. export restrictions, including the H20 chip. The company recently reduced prices for the H20 in response to sluggish sales, aiming to compete with domestically produced chips from Huawei. However, reports indicate that sales for the H20 are beginning to rise, with Nvidia projected to sell over one million units in China this year, valued at about $12 billion, despite U.S. trade barriers.
Analysts from Jefferies have warned that the H20 chips may face increased risks under potential new U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export controls in October, it is likely that the H20 could face a ban on sales to China. Such a ban could occur through various means, including product-specific restrictions, adjustments to computing power thresholds, or limitations on memory capacity.
Furthermore, there is speculation that the U.S. may extend these export controls to chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even to foreign Chinese companies, although implementing such measures may prove challenging.