As the United States considers implementing stricter trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a U.S.-based chip manufacturer, is reportedly developing a modified version of its new artificial intelligence chips to align with these regulations.
According to reports from unnamed sources, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and market a chip currently referred to as the “B20” in China. This new chip is anticipated to begin shipping in the second quarter of 2025.
Though Nvidia has not publicly commented on the report, the company already has three chips that are designed to comply with existing U.S. export controls, including the H20. Nvidia has had to reduce prices for the H20 in response to sluggish sales among competition from Chinese firm Huawei. However, sales of the H20 are reportedly on the rise, and Nvidia is projected to sell over one million H20 chips in China this year, generating around $12 billion in revenue despite U.S. trade barriers. This forecast is nearly double Huawei’s expected sales for its Ascend 910B chip.
Meanwhile, analysts from Jeffries have indicated that Nvidia’s H20 chips could face additional risks under potential new U.S. trade regulations. As part of the annual review of semiconductor export controls scheduled for October, they warn that it is very likely the H20 will be prohibited from being sold to China. This ban could take various forms, including product-specific restrictions, reductions in computing power limits, or caps on memory capacity.
There are also suggestions that the U.S. may broaden its export controls to affect chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or extend these restrictions to Chinese companies operating abroad, although analysts note that implementing such measures could be more complex.