As the United States contemplates stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a new version of its artificial intelligence chips to adhere to these regulations.
According to a report from Reuters, Nvidia is collaborating with local distributor Inspur to introduce and market the newly named “B20” chip specifically for the Chinese market. It is anticipated that shipping for the B20 will commence in the second quarter of 2025. Nvidia has yet to provide a comment on this matter.
The company has created three chips designed to meet U.S. export control regulations, including the H20 chip, which Nvidia recently reduced in price to enhance competitiveness against products from its Chinese rival, Huawei. Reports indicate that sales of the H20 are on the rise, with Nvidia projected to sell over one million units in China this year, amounting to approximately $12 billion, despite existing U.S. trade restrictions. This anticipated figure is nearly double what Huawei expects to achieve with its Ascend 910B chip.
However, analysts at Jeffries caution that Nvidia’s H20 chip could face risks under impending U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export controls in October, there is a strong possibility that the H20 may be prohibited from being sold to China. This prohibition could emerge through various methods, including a product-specific ban, a reduction in computing power limits, or restrictions on memory capacity.
Additionally, the United States may extend its export control measures to chips destined for other regional countries like Malaysia, Indonesia, and Thailand, or even to overseas Chinese firms, although the latter would present greater challenges for enforcement, analysts suggested.