As the United States contemplates stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a leading chipmaker based in the U.S., is reportedly developing a version of its latest artificial intelligence chips that adheres to these regulations.
Sources familiar with the situation informed Reuters that Nvidia is collaborating with a local distribution partner, Inspur, to roll out and market a new chip, provisionally named the “B20,” in the Chinese market. This chip is expected to begin shipments in the second quarter of 2025, although Nvidia has chosen not to comment on the report.
Nvidia has already designed three chips specifically to meet U.S. export controls, including the H20, which the company has reduced prices on due to sluggish sales in order to compete with products from the domestic rival, Huawei. However, reports indicate that sales of the H20 are on the rise, with projections suggesting that Nvidia will sell over one million units in China this year, valued at approximately $12 billion, despite ongoing U.S. trade restrictions. This anticipated sales figure nearly doubles Huawei’s sales forecasts for its Ascend 910B chip.
Conversely, analysts from Jeffries have pointed out that Nvidia’s H20 chips might face future risks under additional U.S. trade regulations. They state that during the annual review of U.S. semiconductor export controls in October, it is highly likely that the H20 could be prohibited from being sold to China. This potential ban could manifest in several ways, including a “product specific ban,” a reduction in the computing power limits, or restrictions on memory capacity.
Furthermore, analysts note that the U.S. might consider widening its export controls on chips exported to neighboring countries such as Malaysia, Indonesia, and Thailand, or potentially extending these controls to companies with ties to China abroad, although the latter would be more challenging to enforce.