As the United States contemplates stricter trade restrictions aimed at halting the transfer of advanced chip technology to China, Nvidia, the U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to meet these regulations.
According to reports, Nvidia is collaborating with a local distributor, Inspur, to launch and market a chip tentatively named the “B20” in China. It is anticipated that this chip will begin shipping in the second quarter of 2025.
Nvidia has previously introduced three chips specifically engineered to comply with U.S. export controls, including the H20, which the company reduced prices for to counteract weak sales in light of competition from domestic rival Huawei. However, sales of the H20 have reportedly started to increase, with expectations of selling over one million units in China this year, valued at around $12 billion, despite existing U.S. trade restrictions. This figure nearly doubles Huawei’s projected sales for its Ascend 910B chip.
Despite this growth, analysts from Jefferies have noted potential risks for Nvidia’s H20 chips under forthcoming U.S. trade regulations. During the annual review of semiconductor export controls in October, they predict a “high likelihood” that the H20 will be prohibited from being sold to China. Possible methods for the ban include implementing a “product specific ban,” reducing the allowable computing power, or capping memory capacity.
Furthermore, there is a possibility that the U.S. might broaden export controls on chips destined for other regional countries like Malaysia, Indonesia, and Thailand, or apply these restrictions to overseas Chinese companies, although such measures would be more challenging to enforce.