As the U.S. evaluates stricter trade measures to limit the flow of advanced chip technology to China, Nvidia, a prominent American chipmaker, is reportedly developing a variant of its new artificial intelligence chips that aligns with these regulations.
According to sources familiar with the situation, Nvidia is collaborating with a local distributor, Inspur, to introduce and market the chip, provisionally named the “B20,” specifically for the Chinese market. The launch and shipping of the B20 are anticipated to commence in the second quarter of 2025.
Nvidia has designed three chips to adhere to U.S. export restrictions, including the H20, which the company reduced prices on due to sluggish sales in order to compete with offerings from the domestic competitor, Huawei. However, sales of the H20 have reportedly begun to pick up. It is estimated that Nvidia will sell over one million H20 chips in China this year, potentially generating around $12 billion in revenue, despite the existing U.S. trade limitations.
Analysts from Jefferies have indicated that the H20 chips may face challenges under potential additional U.S. trade regulations. They noted that during the annual review of semiconductor export controls in October, it is highly probable that the sale of H20 chips to China may be prohibited. The potential ban could take various forms, including a specific product ban, adjustments to the computing power cap, or restrictions on memory capacity.
Furthermore, the U.S. government may consider extending its export controls on chips to other nations within the region, such as Malaysia, Indonesia, and Thailand, or broadening these controls to include overseas Chinese firms, although such measures would be more challenging to enforce.