As the United States evaluates stricter trade measures to prevent advanced chip technology from being exported to China, Nvidia, a prominent U.S. chip manufacturer, is reportedly developing a variant of its latest artificial intelligence chips to align with these regulations.
According to sources familiar with the situation, Nvidia is planning to introduce the “B20” chip in China, working in collaboration with the local distribution partner, Inspur. The new AI chip is anticipated to begin production and shipping by the second quarter of 2025.
Despite Nvidia’s efforts to comply with U.S. export laws, the company has three other chips designed specifically for this purpose, including the H20 chip, which has seen price reductions in response to increased competition from domestic rival Huawei. Reports indicate that the sales of the H20 chip are now on the rise, with projections suggesting that Nvidia may sell over one million units in China this year, amounting to approximately $12 billion, even amid ongoing U.S. trade restrictions. This sales forecast is nearly double that of Huawei’s expected sales for its Ascend 910B chip.
However, analysts from Jefferies have warned that NVIDIA’s H20 chips might face risks under potential new U.S. trade regulations. As the U.S. prepares for its annual review of semiconductor export controls set for October, there is a significant possibility that the H20 could be banned from sales to China. This ban could be implemented through various means, including a specific product ban, a reduction in computing power limits, or restrictions on memory capacity.
Furthermore, the U.S. may expand export controls to encompass chips sold to neighboring countries like Malaysia, Indonesia, and Thailand, or extend these measures to overseas Chinese firms, though such actions may prove more challenging to enforce.