As the U.S. evaluates stricter trade measures aimed at halting the flow of advanced chip technology to China, Nvidia, a leading American chip manufacturer, is reportedly developing a new version of its artificial intelligence chips tailored to meet these regulations.
According to sources cited by Reuters, Nvidia is planning to collaborate with a local distributor, Inspur, to market its new chip, provisionally named the “B20,” in China. Reports suggest that the B20 could begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on these developments.
The company currently offers three chip models specifically designed to adhere to U.S. export controls. Among them is the H20, which Nvidia has recently reduced prices for in order to compete with domestically produced chips from Huawei. Despite earlier weak sales, H20 shipments are reportedly on the rise, with estimates indicating Nvidia may sell over one million units in China this year, valued at approximately $12 billion, according to data from SemiAnalysis conveyed by the Financial Times. This anticipated figure is nearly double Huawei’s projected sales for its Ascend 910B chip.
However, analysts from Jeffries have indicated that Nvidia’s H20 chips could face restrictions under enhanced U.S. trade regulations. They anticipate that during the annual review of U.S. semiconductor export controls in October, it is very likely the H20 could be prohibited from being sold to China. The potential ban could take the form of a specific product limitation, a reduction in the computing power allowed, or restrictions on memory capacity.
Furthermore, there is speculation that the U.S. might extend its export restrictions to chips exported to other countries such as Malaysia, Indonesia, and Thailand, or implement controls on Chinese companies operating overseas, although such measures might be more difficult to enforce, analysts caution.