As the United States considers implementing stricter trade policies aimed at limiting the export of advanced chip technology to China, Nvidia, the U.S.-based chip manufacturer, is reportedly developing a modified version of its artificial intelligence (AI) chips designed to meet these new regulations. According to unnamed sources cited by Reuters, Nvidia plans to collaborate with local distributor Inspur to launch the chip, provisionally named the “B20,” in the Chinese market.
The B20 chip is projected to begin shipping in the second quarter of 2025. Nvidia has not provided any official comments on this matter.
Currently, Nvidia offers three chips that are adapted to comply with existing U.S. export restrictions, including the H20 model. Nvidia has decreased the prices of the H20 chips to enhance its competitiveness against domestic rival Huawei. Reports indicate that sales of the H20 chips are recovering, with expectations to sell over one million units in China this year, valued at approximately $12 billion. This anticipated performance significantly surpasses Huawei’s estimated sales of its Ascend 910B chip.
However, analysts from Jefferies have cautioned that Nvidia’s H20 chips might face risks under potential future U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export controls in October, they assess that it is highly probable that the H20 may face a sales ban to China. Possible measures could include specific product bans, lowering the computing power limits, or imposing restrictions on memory capacity. Moreover, it is conceivable that the U.S. could expand these export restrictions to include chips sold to neighboring countries like Malaysia, Indonesia, and Thailand or target overseas Chinese firms, though the latter option poses a greater implementation challenge.
These developments illustrate the ongoing tension in tech trade relations between the U.S. and China, highlighting how companies like Nvidia are adapting to comply with regulatory landscapes while attempting to sustain their sales and market presence.
In a hopeful outlook, the innovative responses from companies like Nvidia may foster further advancements in technology that adhere to regulations, potentially leading to new products that could enhance the market and stimulate competition in the tech industry on a global scale.