As the U.S. contemplates implementing stricter trade restrictions to limit the export of advanced chip technology to China, Nvidia, a prominent chip manufacturer, is reportedly developing a version of its new artificial intelligence chips that aligns with these regulations.
According to reports, Nvidia is collaborating with a local distributor, Inspur, to introduce a new chip dubbed the “B20” to the Chinese market. This new chip is anticipated to begin shipping in the second quarter of 2025. Nvidia has not commented publicly on the matter.
Nvidia has created several chip variants that adhere to the current U.S. export controls, including the H20 chip, the pricing of which has been adjusted in response to competitive pressures from domestic rivals like Huawei. Despite the challenges posed by U.S. trade restrictions, Nvidia’s H20 chip sales are reportedly gaining momentum, with expectations to exceed one million units sold in China this year, valued at around $12 billion. This figure nearly doubles Huawei’s projected sales for its Ascend 910B chip.
However, the future of Nvidia’s H20 chips remains uncertain, as analysts from Jefferies warn that they may be subjected to new U.S. trade rules following the annual review of semiconductor export controls in October. Potential outcomes include either a specific ban on the H20 chip, alterations to computing power limits, or restrictions on memory capacity, all of which could hinder sales.
There’s also speculation that the U.S. could broaden export controls to encompass chips sold to neighboring countries, such as Malaysia, Indonesia, and Thailand, in addition to extending restrictions to overseas Chinese firms, though the latter may present implementation challenges.
In summary, while Nvidia navigates a complex landscape of regulations and competition, its efforts to adapt and innovate signal resilience and the potential for continued growth, even in the face of trade uncertainties. The collaboration with local partners to develop compliant products reflects a strategic response to an evolving market, emphasizing the adaptive nature of technology companies in challenging environments.