As the U.S. weighs stricter trade rules to prevent advanced chip technology from reaching China, Nvidia, the U.S.-based chip manufacturer, is reportedly developing a new version of its artificial intelligence chips that will comply with these regulations.
According to sources familiar with the matter, Nvidia is collaborating with a local distributor, Inspur, to introduce and market a chip in China, tentatively named the “B20.” This new chip is expected to begin shipments in the second quarter of 2025. Nvidia has not provided any comments on the report.
The company has already designed three chips to adhere to U.S. export controls, including the H20, for which it has reduced prices due to weak sales against competitors like Huawei. Recent reports indicate that sales of the H20 have begun to increase, with expectations that Nvidia will sell over one million units in China this year, generating approximately $12 billion despite existing trade restrictions. This sales forecast is nearly double that of Huawei’s projections for its Ascend 910B chip.
However, analysts from Jefferies have raised concerns that Nvidia’s H20 chips may face further restrictions under upcoming U.S. trade regulations. They predict that during the annual review of semiconductor export controls in October, there is a significant possibility that the H20 could be prohibited from being sold to China. This could occur through either a specific ban on the product, a reduction in the permitted computing power levels, or limitations on memory capacity.
Additionally, the U.S. may choose to expand export controls on chips destined for other countries in the region, including Malaysia, Indonesia, and Thailand. There are also considerations to extend restrictions to overseas Chinese companies, although implementing such measures would be more challenging, according to analysts.