As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, a U.S.-based semiconductor company, is reportedly developing a version of its latest artificial intelligence chips to adhere to these regulations.
According to unnamed sources cited by Reuters, Nvidia is collaborating with a local distribution partner, Inspur, to launch and sell a chip in China, tentatively named the “B20.” This new chip is expected to begin shipping in the second quarter of 2025. Nvidia has not commented on this development.
The company has designed three chips specifically to comply with U.S. export controls, including the H20, which it has reduced prices for in response to weak sales in order to stay competitive with domestic rival Huawei. However, sales of the H20 are reportedly increasing, with expectations of over one million units sold in China this year, valued at approximately $12 billion, despite ongoing trade restrictions. This figure is nearly double Huawei’s projected sales for its Ascend 910B chip, according to data from SemiAnalysis.
Despite this optimistic outlook, Nvidia’s H20 chips may face challenges under potential future U.S. trade regulations. Analysts at Jefferies have indicated in a recent note that during the annual review of semiconductor export controls in October, there is a strong likelihood that the H20 may be prohibited for sale to China. Possible restrictions could include a specific ban on the product, a reduction in computing power limits, or caps on memory capacity.
Furthermore, U.S. officials may consider extending export controls to chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or targeting overseas Chinese companies, though the latter would be more complex to implement, analysts noted.