As the United States contemplates stricter trade regulations to restrict advanced chip technology from reaching China, Nvidia, a prominent American chip manufacturer, is reportedly developing a variant of its latest artificial intelligence chips to adhere to these potential rules.
The new chip, referred to as the “B20,” is designed specifically for the Chinese market and will be distributed in collaboration with a local partner, Inspur, according to unnamed sources cited by Reuters. The B20 is anticipated to begin shipments in the second quarter of 2025.
Nvidia has already created three chips aimed at meeting U.S. export control regulations, including the H20, which the company reduced prices for in response to sluggish sales against competition from China’s Huawei. Reports suggest that H20 sales are now seeing an upward trend, with projections indicating Nvidia may sell over one million H20 chips in China this year, estimated to generate about $12 billion in revenue despite existing U.S. trade restrictions.
However, analysts from Jefferies have raised concerns that Nvidia’s H20 chips could be adversely affected by the potential new U.S. trade rules. In light of the annual review of semiconductor export controls set for October, they noted that it is very likely the H20 may face an outright ban for sales to China. Such a restriction could manifest in various forms, including a specific product ban, a reduction in computing power limits, or limitations on memory capacity.
Additionally, the United States may consider broadening its export controls to encompass chips sold to other countries in the region, like Malaysia, Indonesia, and Thailand, or extending the restrictions to overseas Chinese firms, although implementing such measures would be more complex, analysts indicated.