As the United States contemplates stricter trade restrictions to curb the flow of advanced chip technology to China, Nvidia, a prominent U.S.-based chipmaker, is reportedly developing a version of its new artificial intelligence chips that aligns with these regulations.
According to sources familiar with the situation, Nvidia is collaborating with a local distribution partner, Inspur, to launch the new chip, provisionally named the “B20,” in China. This product is expected to begin shipping in the second quarter of 2025. Nvidia has not commented on these developments.
Currently, Nvidia has three chips that are specifically designed to adhere to U.S. export controls, including the H20 chip, which the company has reduced prices for in response to sluggish sales, in an effort to compete with domestic rival Huawei. However, reports indicate that H20 sales are on the rise. Sources suggest that Nvidia is projected to sell over one million H20 chips in China this year, generating approximately $12 billion in revenue, despite the existing U.S. trade restrictions. This anticipated sales figure is nearly double Huawei’s expected sales for its Ascend 910B chip.
In addition, analysts at Jefferies warn that Nvidia’s H20 chips may face new risks under impending U.S. trade regulations. As the U.S. conducts its annual review of semiconductor export controls in October, there is a strong possibility that the H20 could face a ban on sales to China. Potential avenues for such a ban may include a specific prohibition on the product, a reduction in acceptable computing power, or limits on memory capacity.
Moreover, the U.S. may also consider broadening export restrictions on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or extending these restrictions to overseas Chinese firms, though implementing such measures could prove to be more challenging.