As the United States explores stricter trade regulations to prevent advanced chip technology from being supplied to China, Nvidia, a leading U.S.-based chipmaker, is reportedly developing a version of its latest artificial intelligence chips to align with these new rules.
Nvidia is said to be collaborating with a local distribution partner, Inspur, to introduce and market a chip known tentatively as the “B20” in China. The B20 is projected to begin shipments in the second quarter of 2025, according to sources cited by Reuters. Nvidia has not provided any comment on this situation.
Currently, Nvidia has three chips that are designed to adhere to U.S. export restrictions, including the H20 chip. The company recently reduced prices on the H20 due to lackluster sales in an effort to compete with chips produced by Chinese rival Huawei. However, reports indicate that sales of the H20 have started to increase, with Nvidia expected to sell over one million units in China this year, amounting to approximately $12 billion, despite the existing U.S. trade limitations. This projected sales figure is nearly double that of Huawei’s expected sales for its own Ascend 910B chip.
However, analysts at Jefferies have warned that Nvidia’s H20 chips may be impacted by further U.S. trade regulations. In their assessment ahead of the annual review of U.S. semiconductor export controls in October, they indicated that it is “highly likely” the H20 will face sales restrictions to China. There could be several methods for implementing this ban, such as through a “product-specific ban,” by lowering the computing power cap, or by imposing limits on memory capacity.
Additionally, there is potential for the U.S. to broaden its export controls to include chips distributed to other countries in the region, including Malaysia, Indonesia, and Thailand, as well as to overseas Chinese companies, although analysts suggest this would pose more challenges to enforce.