As the United States explores stricter trade measures to prevent advanced chip technology from being sent to China, Nvidia, a leading chipmaker based in the U.S., is reportedly developing a modified version of its latest artificial intelligence chips to meet these regulations.
According to Reuters, Nvidia is collaborating with a local distribution partner, Inspur, to introduce its new chip, provisionally named the “B20,” to the Chinese market. The B20 is anticipated to begin shipping in the second quarter of 2025, although Nvidia has not publicly commented on these developments.
Currently, Nvidia has three chip models designed to align with U.S. export restrictions, including the H20, which the company has reduced prices for in response to weaker sales due to competition from local rival Huawei. Reports suggest that sales of the H20 are recovering, with expectations to sell over one million units in China this year, amounting to approximately $12 billion, despite existing trade limitations. These figures are nearly double Huawei’s sales targets for its Ascend 910B chip, according to SemiAnalysis data.
However, analysts from Jefferies have indicated that Nvidia’s H20 chips could face challenges under evolving U.S. trade regulations. They predict that during the upcoming annual review of semiconductor export controls in October, it is highly probable that the H20 will be prohibited from being sold to China. Potential methods for the ban could include a specific product ban, a reduction in the allowable computing power, or restrictions on memory capacity.
In addition, the U.S. may consider broadening export controls to include chips sold to other regional countries, like Malaysia, Indonesia, and Thailand, or extend these restrictions to overseas Chinese firms, although implementing these measures could prove more complex, according to analysts.