As the United States contemplates stricter trade measures to prevent the flow of advanced chip technology to China, Nvidia, a leading American chip manufacturer, is reportedly developing a new version of its artificial intelligence chips designed to adhere to these regulations.
Nvidia is said to be collaborating with a local distributor, Inspur, to introduce and distribute a chip tentatively named the “B20” in China, according to information from unnamed sources cited by Reuters. The anticipated launch for the B20 is planned for the second quarter of 2025, although Nvidia has not provided any official comments on the matter.
The company currently has three chips tailored to meet U.S. export restrictions, including the H20, which it has reduced prices for due to sluggish sales in order to compete with domestic rival Huawei. Reports suggest that sales of the H20 have begun to rise, with Nvidia expected to sell over one million units in China this year, translating to approximately $12 billion in revenue despite ongoing trade limitations. This figure reportedly surpasses Huawei’s projected sales for its Ascend 910B chip.
However, analysts at Jefferies have warned that the H20 chips could face challenges if additional U.S. trade policies are enacted. As the U.S. is set to conduct its annual review of semiconductor export controls in October, it is highly likely that the H20 could be prohibited from being sold to China. Such a ban could be implemented in various ways, including through specific product bans, a reduction in the computing power threshold, or restrictions on memory capacity.
Furthermore, the U.S. might consider extending these export controls to chips sold in other countries across the region, such as Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although the latter would be more complex to enforce, according to industry analysts.