NVIDIA is developing a new generation of flagship AI chips for the Chinese market
NVIDIA is developing a new flagship AI chip for the Chinese market that complies with US export controls. The chip will be co-developed with China's major distributor, Inspur. NVIDIA has developed three chips specifically for the Chinese market, but their sales have declined. However, the most advanced H20 chip is selling rapidly, with sales expected to exceed 1 million units in China this year, worth over $12 billion. Global chip stocks plummeted due to the US considering implementing the "Foreign Direct Product Rule." NVIDIA's stock price has risen, with pre-market gains of 1.46%
According to the information obtained by the Financial Channel APP, NVIDIA (NVDA.US) is developing a new flagship artificial intelligence (AI) chip for the Chinese market that complies with current U.S. export controls. Sources revealed that NVIDIA is collaborating with one of its major distributors in China, Inspur, to distribute this chip, tentatively named "B20".
In March of this year, the AI chip giant launched the "Blackwell" series of chips, which will be mass-produced later this year. The B200 chip is reported to be 30 times faster in certain tasks compared to its predecessor, such as providing answers for chatbots.
It is understood that the U.S. tightened controls on the export of advanced semiconductors to China in 2023. Subsequently, NVIDIA developed three chips specifically for the Chinese market.
Following the tightening of export controls in the U.S., the Chinese market accounted for approximately 17% of NVIDIA's revenue by the end of January, down from 26% two years ago.
In May, media reports indicated that NVIDIA's most advanced chip for the Chinese market, the H20, performed poorly when it began shipping this year, with pricing lower than competitors' chips. However, sources mentioned that sales are currently growing rapidly.
Research firm SemiAnalysis estimates that NVIDIA's sales of the H20 chip in China this year are expected to exceed 1 million units, with a value exceeding $12 billion.
Last week, reports emerged that the U.S. is considering implementing a measure called the "Foreign Direct Product Rule," which would allow the U.S. to control foreign-made products that use American technology. In response to this news, global chip stocks plummeted, with the market value of U.S. semiconductor stocks evaporating over $500 billion in a single day.
At the time of writing, NVIDIA's pre-market trading rose by 1.46% to $119.65