As the United States contemplates stricter trade regulations to prevent advanced chip technology from reaching China, Nvidia, a prominent U.S.-based chipmaker, is reportedly developing a version of its new artificial intelligence chips that align with those rules.
According to unnamed sources cited by Reuters, Nvidia is collaborating with a local distribution partner, Inspur, for the launch and sale of a chip tentatively dubbed the “B20” in China. This chip is anticipated to begin shipping in the second quarter of 2025.
Nvidia has already designed three chips specifically to comply with U.S. export regulations, one of which is the H20. In response to sluggish sales, Nvidia reduced the prices of the H20 in order to compete with domestic rival Huawei. However, recent reports indicate that sales of the H20 are on the rise. It is projected that Nvidia will sell over one million H20 chips in China this year, generating around $12 billion in revenue, despite existing U.S. trade restrictions. This expected sales figure is nearly double Huawei’s forecast for its Ascend 910B chip.
Nonetheless, there are concerns that Nvidia’s H20 chips could face new restrictions under potential U.S. trade regulations. Analysts from Jeffries have suggested that during the annual review of semiconductor export controls in October, it is likely that the H20 will be prohibited for sale to China. This ban could be enacted through various means, including a specific product ban, lowering the computing power threshold, or imposing limits on memory capacity.
Moreover, the U.S. might consider extending export controls on chips to other countries in the region such as Malaysia, Indonesia, and Thailand, or even to overseas Chinese firms, although implementing such measures would be more complex.