As the U.S. contemplates stricter trade restrictions to prevent advanced chip technology from being exported to China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips that align with these regulations.
According to reports, Nvidia is working on the “B20” chip for the Chinese market in collaboration with a local distribution partner, Inspur. The B20 is anticipated to begin shipping in the second quarter of 2025, although Nvidia has chosen not to comment on these developments.
Nvidia has already rolled out three chips that are designed to comply with current U.S. export restrictions, including the H20 model. The company has lowered prices for the H20 to enhance competitiveness against rival Huawei’s products. Despite initial challenges, recent reports suggest that sales of the H20 are on the rise, with expectations to sell over one million units in China this year, valued at approximately $12 billion, as reported by the Financial Times, referencing SemiAnalysis data. This projection nearly doubles Huawei’s anticipated sales for its own Ascend 910B chip.
However, analysts from Jefferies indicate that the H20 chips may face risks due to potential upcoming U.S. trade regulations. They noted that during the annual review of semiconductor export controls in October, it is “highly likely” that the H20 could be banned from sales to China. Such a ban could occur through product-specific restrictions, adjustments in computing power caps, or limits on memory capacity.
Additionally, the U.S. might broaden its export controls to include chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even to overseas Chinese firms; although implementing such measures could prove challenging, analysts cautioned.