As the United States contemplates more stringent trade measures to restrict advanced semiconductor technology from reaching China, Nvidia, a prominent American chip manufacturer, is reportedly developing a modified version of its latest artificial intelligence chips to adhere to these regulations.
According to reports, Nvidia is collaborating with a local partner, Inspur, to introduce and market a chip intended for the Chinese market, provisionally named the “B20.” The B20’s anticipated shipping date is set for the second quarter of 2025.
Nvidia has designed three chips specifically in line with U.S. export controls, including the H20, which the company has recently reduced prices for due to lackluster sales, aiming to compete with local competitor Huawei. Despite initial challenges, sales of the H20 are currently on the rise, with estimates suggesting that Nvidia will sell over one million units in China this year, translating to approximately $12 billion in revenue, as noted by the Financial Times referencing SemiAnalysis data. This projected sales figure significantly exceeds Huawei’s expectations for its Ascend 910B chip.
However, Nvidia’s H20 chips might face potential restrictions due to impending U.S. trade regulations. Analysts at Jefferies have indicated that during the annual review of U.S. semiconductor export controls scheduled for October, it is plausible that the H20 could be prohibited from being sold to China. Potential measures for this ban could include specific product restrictions, lowering allowable computing power, or imposing limits on memory capacity.
Furthermore, the U.S. might broaden its export control policies to encompass chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, or expand restrictions to include Chinese companies operating overseas, though this would present additional challenges, according to analysts.