As the United States deliberates over stricter trade regulations aimed at preventing advanced chip technology from reaching China, Nvidia, a prominent chip manufacturer based in the U.S., is reportedly developing a version of its new artificial intelligence chips to align with these impending rules.
According to reports, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and market a chip tentatively named the “B20” in China. This new chip is anticipated to begin shipping in the second quarter of 2025, although Nvidia has opted not to comment on the matter.
The company has already created three chip models specifically designed to adhere to U.S. export controls, including the H20 model. Nvidia has adjusted pricing for the H20 in response to sluggish sales, seeking to compete against domestic rival Huawei. However, sources indicate that sales of the H20 have started to improve, with projections suggesting that Nvidia may sell over one million H20 chips in China this year, generating around $12 billion in revenue, despite existing U.S. trade restrictions. This forecast nearly doubles Huawei’s anticipated sales for its Ascend 910B chip, according to data from SemiAnalysis.
Concerns have arisen regarding potential further restrictions on Nvidia’s H20 chips under upcoming U.S. trade regulations. Jefferies analysts warned that during the annual review of U.S. semiconductor export controls in October, it is quite likely that the H20 may face a ban on sales to China. This ban could be enacted in several ways, including through a specific product ban, a reduction in the computing power threshold, or limitations on memory capacity.
Additionally, analysts suggest that the U.S. could broaden its export controls to include chips sold to neighboring countries such as Malaysia, Indonesia, and Thailand, or extend these controls to overseas Chinese firms, although implementing such measures would pose greater challenges.