As the United States contemplates implementing stricter trade measures aimed at preventing advanced chip technology from reaching China, Nvidia, the American chip manufacturer, is reportedly developing a version of its new artificial intelligence chips that aligns with these regulations.
According to sources familiar with the situation, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and market a chip code-named “B20” in China. The B20 is anticipated to begin shipping in the second quarter of 2025.
Nvidia has previously designed three chips to adhere to U.S. export restrictions, including the H20 model, which saw a reduction in pricing to bolster its competitive position against domestic rival Huawei amid sluggish sales. However, H20 sales are reportedly on the rise, with sources indicating that Nvidia is projected to sell over one million H20 chips in China this year, generating approximately $12 billion in revenue despite existing U.S. trade hurdles. This sales forecast nearly doubles Huawei’s expectations for its Ascend 910B chip, according to analysis data.
However, analysts from Jeffries have raised concerns that Nvidia’s H20 chips could face challenges under impending U.S. trade legislation. As the U.S. prepares for its annual review of semiconductor export controls in October, the possibility of a ban on H20 sales to China is significant. The anticipated restrictions could manifest in several ways, including a specific prohibition on the product, reduced computing power limits, or memory capacity caps.
Furthermore, the U.S. may broaden its export controls to include chips exported to other countries in the region, such as Malaysia, Indonesia, and Thailand, or may even extend restrictions to Chinese companies operating abroad, although such measures would present additional implementation challenges, according to analysts.