As the United States evaluates stricter trade limitations to stop advanced chip technology from reaching China, Nvidia, a U.S.-based semiconductor company, is reportedly developing a modified version of its latest artificial intelligence chips to adhere to these regulations.
According to reports from Reuters, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and sell its new chip, provisionally named the “B20,” in China. The release of the B20 is anticipated to occur in the second quarter of 2025.
Nvidia has three chip models specifically engineered to align with U.S. export restrictions, including the H20, for which the company lowered prices due to sluggish sales to compete against domestic rival Huawei. Nevertheless, sales of the H20 chips are now on the rise, as indicated by sources. It is projected that Nvidia will sell over one million H20 chips in China this year, potentially accruing around $12 billion in revenue, despite ongoing U.S. trade limitations. This sales forecast nearly doubles Huawei’s expectations for its Ascend 910B chip.
However, analysts from Jeffries have expressed concerns that Nvidia’s H20 chips could face risks under potential new U.S. trade regulations. As part of its annual review of semiconductor export controls in October, the U.S. may impose a ban on H20 sales to China. Such a ban could be executed in several ways, including a product-specific prohibition, a reduction in the computing power threshold, or limitations on memory capacity.
Additionally, there are discussions about the possibility of extending export restrictions on chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, or to overseas Chinese companies, though analysts note that enforcing this would be more challenging.