As the U.S. considers stricter trade measures to restrict advanced chip technology from being sent to China, Nvidia, a prominent American chipmaker, is reportedly developing a modified version of its latest artificial intelligence chips to adhere to these regulations.
According to sources familiar with the situation, Nvidia is collaborating with a local distributor, Inspur, to launch and market a chip, temporarily named the “B20,” for the Chinese market. The B20 is anticipated to commence shipping in the second quarter of 2025.
Nvidia has already created three chips specifically designed to align with U.S. export regulations, among them the H20, which the company reduced prices on in response to sluggish sales, primarily due to competition from domestic rival Huawei. However, sales of the H20 are reportedly increasing, with Nvidia projected to sell over one million units of the H20 in China this year, valued at approximately $12 billion, despite existing trade restrictions. This anticipated sales figure is nearly double that of Huawei’s expected sales for its Ascend 910B chip.
Nevertheless, analysts from Jefferies express concern that Nvidia’s H20 chips could face further risks under new U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export controls in October, they suggest it is highly probable that the H20 will be prohibited for sale to China. Potential strategies for implementing this ban include a specific prohibition on the product, lowering the computing power limits, or imposing restrictions on memory capacity.
There is also speculation that the U.S. might extend these export controls to chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or broaden controls to encompass overseas Chinese companies, although implementing such measures could be more complex.