As the U.S. deliberates on implementing stricter trade restrictions aimed at preventing advanced chip technology from reaching China, Nvidia, a U.S.-based semiconductor manufacturer, is reportedly developing a version of its new artificial intelligence chips that aligns with these impending regulations.
According to unnamed sources cited by Reuters, Nvidia is working with local distribution partner Inspur to launch the new chip, tentatively named “B20,” in China by the second quarter of 2025. Nvidia has not issued any official comments regarding this development.
The company has already introduced three chips that are structured to comply with U.S. export controls, including the H20. Nvidia has reportedly lowered prices for the H20 to remain competitive against rival Huawei amid sluggish sales. However, the sales of H20 chips are now reportedly on the rise. Analysts believe that Nvidia is set to sell over one million H20 chips in China this year, which could generate approximately $12 billion in revenue, despite the existing U.S. trade restrictions. This projected sales figure is nearly double Huawei’s sales expectations for its Ascend 910B chip, according to data from SemiAnalysis.
On the other hand, analysts from Jefferies have noted that Nvidia’s H20 chips may face challenges under potential future U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export controls in October, there is a strong possibility that the H20 could be prohibited from being sold to China. Jefferies analysts suggested that such a ban could occur through a “product-specific ban, a reduction in the computing power cap, and/or limitations on memory capacity.”
Additionally, U.S. officials could extend export controls on chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or to overseas Chinese firms, although implementing such measures may prove more complex.