As the United States weighs stricter trade measures aimed at preventing advanced chip technology from reaching China, Nvidia, a prominent chip manufacturer based in the U.S., is reportedly developing a modified version of its latest artificial intelligence chips to adhere to these regulations.
Nvidia is planning to introduce a chip known as the “B20” in China, collaborating with local distributor Inspur for its launch and sale, according to sources familiar with the situation. The B20 is projected to begin shipping by the second quarter of 2025, although Nvidia has not commented on these developments.
The company currently has three chips that have been specifically designed to meet U.S. export guidelines, including the H20, which Nvidia recently lowered prices on to boost sales against competition from local rival Huawei. Reports indicate that H20 sales are on the rise, with projections indicating sales of over one million units in China this year, potentially generating around $12 billion, as noted by industry data, despite ongoing trade restrictions.
However, Nvidia’s H20 chips may face challenges under impending U.S. trade regulations. Analysts from Jefferies indicated that it is highly probable the H20 could be prohibited for sale to China during the upcoming annual review of U.S. semiconductor export controls in October. A potential ban could be implemented in various ways, such as a product-specific restriction, adjustments to the allowable computing power, or limitations on memory capacity.
Additionally, the U.S. may expand its export controls to chips exported to neighboring countries like Malaysia, Indonesia, and Thailand, and might consider extending these regulations to overseas Chinese firms, although the latter would pose greater implementation challenges, according to analysts.