As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from reaching China, American chip manufacturer Nvidia is reportedly developing a version of its new artificial intelligence chips that adheres to these regulations.
According to Reuters, Nvidia is preparing to launch a chip for the Chinese market, tentatively named the “B20,” in collaboration with a local distribution partner, Inspur. It is anticipated that the B20 will begin shipping in the second quarter of 2025. Nvidia did not provide any comments regarding this information.
Currently, Nvidia has three chips designed to comply with U.S. export controls, including the H20. The company has reduced prices for the H20 amid lackluster sales to compete against local competitor Huawei. However, reports indicate that sales for the H20 are picking up, with Nvidia expected to sell over one million units in China this year, generating approximately $12 billion in revenue despite existing U.S. trade restrictions. This projection is nearly double Huawei’s expected sales for its Ascend 910B chip.
Analysts from Jefferies have raised concerns about the future of Nvidia’s H20 chips under potential additional U.S. trade regulations. They believe that during the annual review of semiconductor export controls in October, it is highly likely that the H20 could face restrictions on sales to China. Such a ban may be implemented through various methods, including a product-specific ban, lowering the computational power limit, or capping memory capacity.
Furthermore, U.S. export controls on chips could extend to other countries in the region, including Malaysia, Indonesia, and Thailand, or even to foreign companies linked to China, though analysts suggest that implementing such measures would be more challenging.