As the U.S. contemplates implementing stricter trade regulations to prevent advanced chip technology from being exported to China, Nvidia, a prominent American chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.
According to sources familiar with the matter, Nvidia is collaborating with Inspur, a local distribution partner in China, to introduce and market a new chip provisionally named the “B20.” The chip is expected to begin shipping in the second quarter of 2025.
Nvidia has already created three chip models designed to meet U.S. export regulations. Among these is the H20, which the company reduced prices for due to lackluster sales, hoping to compete with chips from domestic competitor Huawei. However, reports indicate that H20 sales are beginning to rise, with Nvidia anticipated to sell over one million of these chips in China this year, generating approximately $12 billion, despite the ongoing U.S. trade restrictions.
Jefferies analysts have expressed concerns that Nvidia’s H20 chips could face additional risks under new U.S. trade measures. The annual review of U.S. semiconductor export regulations is scheduled for October, and analysts suggest it is very likely that the H20 could be banned from sale to China. Potential methods for implementing this ban could include a product-specific restriction, lowering allowed computing power limits, or capping memory capacity.
Furthermore, the U.S. might extend these export restrictions on chips to other countries in the region, including Malaysia, Indonesia, and Thailand, or even broaden the scope to cover overseas Chinese companies, although the latter would be more challenging to enforce.