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 modified version of its new artificial intelligence chips to adhere to these regulations.
According to sources familiar with the matter, Nvidia is collaborating with a local distributor, Inspur, to introduce a new chip, tentatively named the “B20,” in the Chinese market. The B20 is anticipated to begin shipping in the second quarter of 2025.
Nvidia has already produced three chips specifically designed to comply with U.S. export controls, including the H20, which it recently lowered prices for due to sluggish sales in a bid to compete against homegrown rival Huawei. However, reports indicate that sales of the H20 are on the rise, with Nvidia expected to sell over one million units in China this year, amounting to approximately $12 billion, despite ongoing U.S. trade restrictions. This figure is nearly double Huawei’s sales expectations for its Ascend 910B chip.
Analysts from Jefferies have noted that Nvidia’s H20 chips may face increased risks under potential new U.S. trade regulations. During the annual review of U.S. semiconductor export controls set for October, it is likely that the H20 could be banned from being sold in China. This ban could be implemented through various means, including a specific product ban, tightening computing power limits, or capping memory capacities.
Additionally, there is a possibility that the U.S. may expand export controls to include chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or could extend these controls to overseas Chinese companies, although the latter would present more challenges for implementation.