As the United States weighs stricter trade measures to restrict advanced chip equipment from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to align with these regulations.
According to a report by Reuters, Nvidia is collaborating with a local distributor, Inspur, to introduce and market a chip tentatively named the “B20” in China. The B20 is anticipated to begin shipping in the second quarter of 2025.
Nvidia has already designed three chips, including the H20, to adhere to U.S. export controls. The company had reduced prices for the H20 in response to disappointing sales, aiming to compete with domestic rival Huawei. However, recent reports indicate that sales of the H20 are now increasing, with expectations to sell over one million units in China this year, valued at approximately $12 billion, despite existing trade restrictions.
Jefferies analysts have expressed concerns that Nvidia’s H20 chips may face challenges under new U.S. trade regulations. They predict that during the upcoming annual review of semiconductor export controls in October, it is very likely that the H20 will be prohibited from being sold to China. Potential methods for enforcing the ban include implementing a specific product prohibition, reducing the computing power threshold, or limiting memory capacity.
Additionally, there are suggestions that the U.S. may broaden export controls on chips to encompass other nations in the region, such as Malaysia, Indonesia, and Thailand, or extend restrictions to overseas Chinese companies, though this could pose implementation challenges.