As the United States evaluates stricter trade measures to stop advanced chip technology from being exported to China, Nvidia, a U.S.-based semiconductor company, is reportedly developing a version of its new artificial intelligence chips that adheres to these regulations.
According to reports from Reuters, Nvidia is collaborating with local distributor Inspur to introduce and market a new chip, provisionally named the “B20,” specifically for the Chinese market. The anticipated launch is expected with shipments beginning in the second quarter of 2025.
Nvidia is already manufacturing three chips tailored to meet U.S. export guidelines, including the H20. The company recently reduced the prices of the H20 amidst a slowdown in sales, aiming to remain competitive against domestic rival Huawei. However, reports indicate that H20 sales are starting to increase, with expectations that Nvidia will sell over one million units in China this year, valued at approximately $12 billion, despite ongoing U.S. trade restrictions. This figure nearly doubles Huawei’s anticipated sales for its Ascend 910B chip.
Looking ahead, Jefferies analysts caution that Nvidia’s H20 chips may face increased regulatory risks under future U.S. trade policies. With the annual review of U.S. semiconductor export controls scheduled for October, analysts predict that it is “highly likely” the H20 will be prohibited for sale to China. Potential avenues for such a ban could include specific product bans, adjustments to computing power limits, or restrictions on memory capacity.
Furthermore, analysts suggest that the U.S. may also expand chip export regulations to other regional countries like Malaysia, Indonesia, and Thailand, or apply these restrictions to overseas Chinese firms, though the latter would be more challenging to implement.