As the United States evaluates stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, a leading chipmaker based in the U.S., is reportedly developing a modified version of its new artificial intelligence chips to meet these compliance requirements.
According to sources familiar with the situation, Nvidia is working on a new chip, tentatively named the “B20,” intended for the Chinese market in collaboration with local distribution partner Inspur. The B20 is expected to be available for shipment in the second quarter of 2025.
Nvidia has already designed three chip models to adhere to U.S. export controls, including the H20, which the company reduced prices on due to lackluster sales in competition with Chinese rival Huawei. However, reports indicate that H20 sales are now on the rise, with expectations to surpass one million units sold in China this year, potentially generating around $12 billion in revenue, despite existing trade restrictions.
Jefferies analysts have noted that Nvidia’s H20 chips might face challenges due to potential updates in U.S. trade policies during the annual review of semiconductor export controls in October. Analysts suggest that the H20 may be subject to a ban in China through various means, including product-specific restrictions or alterations to computing power and memory capacity limits.
Furthermore, there is speculation that the U.S. might broaden its export controls not only to China but also to other countries in the region, including Malaysia, Indonesia, and Thailand, as well as potentially impacting overseas Chinese companies, although the latter could be more complicated to enforce.