As the U.S. evaluates stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, a leading American chip manufacturer, is reportedly developing a version of its new artificial intelligence chips that adheres to these proposed regulations.
According to unnamed sources cited by Reuters, Nvidia is collaborating with a local distributor, Inspur, to introduce and market a chip tentatively named the “B20” specifically for the Chinese market. The B20 is anticipated to begin shipping in the second quarter of 2025. Nvidia has not provided any comments on these developments.
The company currently has three chips designed to meet U.S. export control requirements, including the H20, which has seen a price reduction due to sluggish sales as it competes against domestic rival Huawei. Nonetheless, H20 sales have reportedly been picking up, with estimates suggesting Nvidia could sell over one million H20 chips in China this year, amounting to approximately $12 billion, despite ongoing U.S. trade restrictions. This forecasted figure is nearly double Huawei’s projected sales for its Ascend 910B chip, according to data from SemiAnalysis.
However, analysts from Jefferies have indicated that Nvidia’s H20 chips might face new risks from potential U.S. trade regulations. They predict that during the annual review of semiconductor export controls in October, it is very likely that H20 sales to China will be prohibited. Possible methods for implementing this ban could include a product-specific ban, lowering the computing power limit, or imposing restrictions on memory capacity.
Additionally, the U.S. may consider expanding export regulations on chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or potentially extending these controls to overseas Chinese companies, though the latter would be more challenging to enforce, according to analysts.