As the U.S. evaluates stricter trade regulations aimed at preventing advanced chip technologies from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a variant of its new artificial intelligence chips to meet these regulations.
According to sources familiar with the situation, Nvidia is collaborating with a local distribution partner, Inspur, to introduce and market a chip tentatively named the “B20” in China. The B20 is projected to begin shipping by the second quarter of 2025. Nvidia has chosen not to comment on the matter.
Nvidia has already designed three chips that align with U.S. export controls, one of which is the H20. The company reduced the price of the H20 due to sluggish sales in an effort to compete against Huawei’s domestic offerings. However, reports indicate that sales of the H20 are now showing growth, with Nvidia anticipated to sell over one million units in China this year, generating approximately $12 billion in revenue, despite existing trade restrictions, as noted by the Financial Times referencing SemiAnalysis data. This sales forecast for Nvidia is nearly double the expectations for Huawei’s Ascend 910B chip.
Concerns have emerged regarding the future of Nvidia’s H20 chips under potential additional U.S. trade measures. Analysts from Jeffries predict that during the annual review of U.S. semiconductor export controls in October, it is highly plausible that the sale of H20 chips to China will be banned. Potential methods for enacting this ban could include a specific product ban, a reduction in the allowed computing power, or imposing a limit on memory capacity.
Furthermore, analysts suggest that the U.S. may broaden its export controls on chips sold to nearby countries such as Malaysia, Indonesia, and Thailand, or even extend these regulations to overseas Chinese companies, although implementing this would be more complex.