As the United States contemplates stricter trade measures to prevent advanced semiconductor technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its latest artificial intelligence chips to align with these regulations.
According to unnamed sources cited by Reuters, Nvidia is collaborating with a local distributor, Inspur, to introduce the new chip in China, provisionally named the “B20.” This chip is expected to begin shipping in the second quarter of 2025, although Nvidia has not commented on the report.
Nvidia has already created three chips specifically designed to adhere to U.S. export restrictions, including the H20 chip, which the company reduced prices for due to sluggish sales as a way to compete against chips from local rival Huawei. However, recent reports indicate that sales for the H20 are increasing, with expectations to sell over one million units in China this year, valued at approximately $12 billion, despite ongoing trade limitations. This figure nearly doubles Huawei’s sales forecasts for its Ascend 910B chip, according to data from SemiAnalysis.
Nevertheless, Nvidia’s H20 chips could face challenges under potential new U.S. trade regulations, analysts from Jefferies warn. With the upcoming annual review of U.S. semiconductor export controls in October, there is a strong likelihood that the H20 will be prohibited from being sold in China. This ban could materialize in several forms, such as a specific product ban, a reduction in computing power thresholds, or limits on memory capacity.
Additionally, the U.S. may expand export controls on chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or extend restrictions to overseas Chinese companies, although implementing such measures could be more complex, according to analysts.