As the United States evaluates stronger trade restrictions aimed at preventing advanced chip technology from reaching China, U.S.-based chipmaker Nvidia is reportedly developing a modified version of its new artificial intelligence chips to adhere to these regulations.
According to Reuters, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and market its new chip, provisionally named the “B20,” specifically for the Chinese market. This new chip is anticipated to begin shipping in the second quarter of 2025.
In compliance with U.S. export controls, Nvidia has already designed three chips, including the H20 model, for which it has reduced prices in light of sluggish sales, competing against domestic rival Huawei. Recent reports indicate that H20 sales are on the rise, with Nvidia projected to sell over one million units in China this year, generating around $12 billion despite existing trade restrictions.
However, analysts from Jefferies have raised concerns that further tightening of U.S. trade policies could jeopardize the H20 chips. In their upcoming review of semiconductor export controls scheduled for October, it is highly probable that the H20 may face a ban on sales to China. Possible restrictions could include a specific ban on the product, a reduction in computing power limits, or restrictions on memory capacity.
The U.S. might also consider extending these export controls to chip sales in other regional countries, including Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although the latter could present implementation challenges.