As the United States considers stricter trade restrictions to prevent advanced chip technology from reaching China, U.S.-based chip manufacturer Nvidia is reportedly developing a version of its new artificial intelligence chips that would comply with these regulations.
According to sources familiar with the matter, Nvidia is collaborating with local distribution partner Inspur to launch and sell a chip tentatively named the “B20” in China. This chip is part of Nvidia’s broader response to comply with U.S. export controls.
The B20 is projected to be available for shipping in the second quarter of 2025. Nvidia has not provided official comments regarding this development.
In addition, Nvidia has three chips specifically designed to meet U.S. export requirements, including the H20. To compete with domestic rival Huawei, Nvidia has reduced prices for the H20 amid less-than-robust sales. However, recent reports indicate that sales of the H20 are on the rise, with expectations to exceed one million units in China this year, valued at approximately $12 billion, despite ongoing U.S. trade restrictions. This forecast nearly doubles Huawei’s anticipated sales for its Ascend 910B chip.
Additionally, analysts from Jefferies have raised concerns that Nvidia’s H20 chips could be affected by further U.S. trade regulations. As part of its annual review of semiconductor export controls in October, there is a significant likelihood that the sale of H20 chips to China could be banned. The potential ban could manifest through various measures, such as a specific product ban, reducing computing power limits, or imposing restrictions on memory capacity.
Moreover, analysts suggest that the U.S. might expand its export controls to include chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or potentially extend regulations to overseas Chinese firms, although this latter move may face implementation challenges.