As the U.S. deliberates on stricter trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a U.S.-based chip manufacturer, is reportedly developing a version of its latest artificial intelligence chips that adheres to these regulations.
Nvidia is said to be collaborating with local distributor Inspur to introduce and market the chip, preliminarily named “B20,” in China. The B20 is anticipated to begin shipping by the second quarter of 2025, according to sources familiar with the matter. Nvidia has chosen not to comment on these developments.
The company has already designed three chips, including the H20, specifically engineered to meet U.S. export control requirements. In an effort to boost sales against domestic rival Huawei, Nvidia has recently reduced prices for the H20 chip. Reports indicate that sales of the H20 are currently increasing, with projections suggesting more than one million units will be sold in China this year, generating approximately $12 billion in revenue, despite existing U.S. trade barriers.
However, analysts from Jeffries caution that Nvidia’s H20 chips might be subject to additional U.S. trade restrictions. During the U.S. annual review of semiconductor export controls in October, there is a significant possibility that the H20 may be prohibited for sale to China. This could be enacted through various means, such as a specific ban on the product, a reduction in the computing power cap, or limitations on memory capacity.
Furthermore, the U.S. may consider extending export controls on chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or broaden the restrictions to encompass overseas Chinese firms, although this would present more implementation challenges, according to analysts.