As the U.S. contemplates stricter trade restrictions to prevent advanced semiconductor technology from reaching China, Nvidia, a major American chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.
According to sources familiar with the situation, Nvidia is crafting the “B20” chip specifically for the Chinese market, in collaboration with local distributor Inspur. The B20 is anticipated to begin shipping in the second quarter of 2025, although Nvidia has declined to provide further comments.
Nvidia has already created three chips that meet U.S. export control guidelines, including the H20, which the company reduced prices for in response to lackluster sales amid competition from China’s Huawei. However, sales of the H20 have reportedly begun to rise, with expectations to exceed one million units sold in China this year, valued at roughly $12 billion, according to data from SemiAnalysis reported by the Financial Times. This projection is nearly double that of Huawei’s expected sales for its Ascend 910B chip.
On the other hand, analysts from Jefferies have cautioned that Nvidia’s H20 chips could be subject to further U.S. trade regulations. In an upcoming review of semiconductor export controls in October, they suggest it is likely the H20 could be prohibited for sale to China. Such a ban could take various forms, including specific product bans, adjusting the computing power limits, or setting caps on memory capacity.
Additionally, the U.S. may widen export control measures to encompass semiconductor sales to other regional countries like Malaysia, Indonesia, and Thailand, or extend restrictions to overseas Chinese firms, although the latter would present greater challenges for enforcement, analysts noted.