As the United States explores stricter trade measures to prevent advanced chip technology from reaching China, Nvidia, the U.S.-based semiconductor manufacturer, is reportedly developing a version of its latest artificial intelligence chips that aligns with these regulations.
According to anonymous sources cited by Reuters, Nvidia is collaborating with a Chinese distribution partner, Inspur, to introduce and market the chip, which is tentatively named the “B20,” in China. The launch is anticipated to take place in the second quarter of 2025, although Nvidia has refrained from providing comments on this matter.
The company has already designed three chips that adhere to U.S. export guidelines, one of which is the H20. Nvidia has reduced prices for the H20 in response to sluggish sales, aiming to better compete against domestic rival Huawei. However, recent reports suggest that H20 sales are on the rise, with Nvidia expected to sell over one million units in China this year, translating to roughly $12 billion in revenue, despite the ongoing trade restrictions. This anticipated sales figure is nearly double the expected sales of Huawei’s Ascend 910B chip.
Moreover, there are concerns regarding the potential impact of additional U.S. regulations on Nvidia’s H20 chips. Analysts from Jefferies highlighted that during the upcoming annual review of semiconductor export controls in October, it is “highly likely” the H20 could be prohibited from being sold to China. The potential ban could manifest in several forms, including a specific ban on the product, a reduction in the allowable computing power, or restrictions on memory capacity.
There is also a possibility that the U.S. may broaden its export controls to encompass chips sold to other nations in the region, such as Malaysia, Indonesia, and Thailand, or even extend these regulations to Chinese companies operating overseas, though the latter would be more challenging to enforce, according to analysts.