As the United States considers implementing stricter trade restrictions to prevent advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chip manufacturer, is reportedly developing a version of its new artificial intelligence chips to adhere to these regulations.
According to sources familiar with the matter, Nvidia is focusing on a new AI chip called “B20,” which is designed for the Chinese market. The company is expected to collaborate with local distribution partner Inspur to launch and market this chip. It is anticipated that the B20 will begin shipping in the second quarter of 2025.
Nvidia has introduced three chips specifically designed to comply with U.S. export rules, including the H20 chip, for which the company has reduced prices in response to weak sales in competition with domestic rival Huawei. Despite initial sluggish sales, reports indicate that the H20 is now experiencing growth, with Nvidia expected to sell over one million units in China this year, amounting to approximately $12 billion, according to data from SemiAnalysis. This projection nearly doubles Huawei’s anticipated sales for its Ascend 910B chip.
However, according to analysts at Jeffries, Nvidia’s H20 chips may be vulnerable to additional U.S. trade regulations. With the annual review of semiconductor export controls scheduled for October, analysts suggest it is “highly likely” that the H20 will face a ban on sales to China. Potential avenues for such a ban could include specific restrictions on the product, modifications to the computing power limitations, or caps on memory capacity.
Furthermore, the U.S. may also consider extending export controls on chips sold to other countries in the region, including Malaysia, Indonesia, and Thailand, or even targeting overseas Chinese companies, although such implementation may prove more challenging, analysts warn.