As the United States explores more stringent trade restrictions to block advanced chip technology from reaching China, Nvidia, a leading chipmaker based in the U.S., is reportedly developing a version of its latest artificial intelligence chips that will align with these regulations.
According to reports from unnamed sources, Nvidia is designing the “B20” chip specifically for the Chinese market, collaborating with local partner Inspur for its launch and distribution. The B20 is anticipated to begin shipping in the second quarter of 2025.
Nvidia has created three chip variants to comply with U.S. export controls, including the H20 chip, which saw a price reduction to better compete with domestic rival Huawei due to weaker sales. Despite initial challenges, sales of the H20 are reportedly on the rise. Estimates suggest Nvidia could sell over one million H20 chips in China this year, translating to approximately $12 billion in revenue, which is significantly higher than Huawei’s projected sales for its Ascend 910B chip.
However, analysts from Jefferies have warned that Nvidia’s H20 chips might face additional risks under upcoming U.S. trade regulations. As the U.S. conducts its annual review of semiconductor export controls in October, there is a strong possibility that the H20 will be subject to restrictions for sale to China. Potential bans could manifest through various measures, including specific product bans, reductions in computing power, or limitations on memory capacity.
Furthermore, export restrictions could also be extended to chips destined for other countries in the region, such as Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although enforcing such measures would present greater challenges.