As the U.S. explores stricter trade restrictions to limit the flow of advanced chip technology to China, American chip manufacturer Nvidia is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.
Nvidia is said to be collaborating with a local distributor, Inspur, to introduce and market the chip, provisionally named the “B20,” in China. This information comes from sources familiar with the situation, as reported by Reuters.
The B20 is projected to begin shipping in the second quarter of 2025. Nvidia has not commented on this development.
Currently, the company has three chips designed to meet U.S. export regulations, including the H20, which Nvidia recently reduced prices for amid declining sales to compete with local rival Huawei. However, the sales of the H20 have started to rise. Reports suggest that Nvidia is on track to sell over one million H20 chips in China this year, estimated to be worth around $12 billion, despite existing U.S. trade restrictions. This anticipated figure is nearly double the sales forecast for Huawei’s Ascend 910B chip, according to data from SemiAnalysis.
On another front, Nvidia’s H20 chips could face challenges under potential new U.S. trade regulations. Analysts at Jeffries have indicated that during the U.S. annual review of semiconductor export controls in October, it is highly probable that sales of the H20 to China will face a ban. This ban could manifest in various forms, including a “product specific ban,” a reduction in the computing power cap, or restrictions on memory capacity.
Additionally, the U.S. may consider extending export controls on chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or broaden the restrictions to cover overseas Chinese companies, although executing this could be more complex, according to analysts.