As the United States evaluates stricter trade measures to restrict advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its latest artificial intelligence chips designed to meet these regulations.
According to Reuters, Nvidia is focusing on creating a chip, tentatively named the “B20,” specifically for the Chinese market, collaborating with local distribution partner Inspur for its launch and sale. The B20 is anticipated to be shipped starting in the second quarter of 2025. Nvidia has chosen not to comment on these developments.
Currently, Nvidia has three chips engineered to comply with U.S. export restrictions, including the H20 model, which the company has recently reduced prices for due to sluggish sales against competition from China’s Huawei. Despite these challenges, sources indicate that H20 sales are experiencing growth, with Nvidia projected to sell over one million of these chips in China this year, generating approximately $12 billion in revenue, even amidst ongoing U.S. trade limitations. This forecast nearly doubles Huawei’s anticipated sales for its Ascend 910B chip.
However, concerns arise regarding the future of Nvidia’s H20 chips, as they may face additional risks from forthcoming U.S. trade regulations. Analysts from Jefferies have suggested that during the U.S. annual review of semiconductor export controls, it is quite probable that the H20 will be prohibited from being sold to China. This potential ban could manifest in several ways, including a direct prohibition on the product, a reduction in the allowable computing power, or limitations on memory capacity.
Moreover, there are discussions about the possibility of extending export controls on chips destined for other countries in the region, such as Malaysia, Indonesia, and Thailand, or even applying these restrictions to overseas Chinese companies, though such actions would be more challenging to enforce.