As the United States contemplates stricter trade measures to restrict advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its latest artificial intelligence chips to adhere to these regulations.
According to reports from Reuters, Nvidia is collaborating with a local partner, Inspur, to introduce the new chip, currently referred to as the “B20,” to the Chinese market. This chip is expected to commence shipping in the second quarter of 2025.
Nvidia has previously designed three chips in compliance with U.S. export controls, including the H20, for which the company recently reduced prices due to sluggish sales, aimed at competing with homegrown rival Huawei. However, reports indicate that sales of the H20 are beginning to pick up, with Nvidia projected to sell over one million units in China this year, generating approximately $12 billion in revenue despite existing U.S. trade restrictions. This figure is nearly double Huawei’s anticipated sales for its Ascend 910B chip.
Nevertheless, Jefferies analysts have cautioned that Nvidia’s H20 chips may face challenges under potential new U.S. trade regulations. In their upcoming annual review of semiconductor export controls, analysts suggest it is quite likely that the H20 will be prohibited from being sold to China. Such a ban could occur through several means: a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
Additionally, there is potential for the U.S. to broaden its export control measures to include chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or to target overseas Chinese firms, though the latter may prove more challenging to implement, analysts have warned.