As the United States considers stricter trade measures to prevent advanced chip technology from being exported to China, the American semiconductor company Nvidia is reportedly developing a new version of its artificial intelligence chips that would adhere to these regulations.
According to sources familiar with the situation, Nvidia is collaborating with a local distributor, Inspur, to introduce and market the chip, which is currently designated as the “B20,” specifically for the Chinese market. This new B20 chip is expected to begin shipping in the second quarter of 2025.
Nvidia has already designed three chips to meet U.S. export controls, including the H20, which the company reduced prices on to enhance competitiveness against Chinese rival Huawei. Despite initial slow sales, demand for the H20 has reportedly surged, with projections indicating that Nvidia will sell over one million H20 chips in China this year, generating around $12 billion in revenue despite the existing trade restrictions.
However, analysts from Jeffries have warned that Nvidia’s H20 chips may face additional scrutiny under potential future U.S. trade regulations. During the upcoming annual review of semiconductor export controls in October, it is considered “highly likely” that sales of the H20 to China will be prohibited. Such a ban could be implemented in several ways, including through product-specific restrictions, reductions in the computing power limit, or limitations on memory capacity.
Furthermore, there is the possibility that the U.S. may broaden its export controls to apply to chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, or even to overseas Chinese firms, though this would present more challenges in enforcement, according to analysts.