Nvidia's New China-Ready GPUs Face Uncertainty Amid Chip Restrictions
Nvidia has uncertainties over B20 chip deliveries due to probable chip limits. The company has faced hurdles as a result of US restrictions limiting China's access to innovative semiconductors. Nvidia introduces new GPUs such as H20 to compete with domestic Chinese chip producers.
According to industry sources, the corporation has yet to establish a delivery date, citing fears about potential sanctions escalation that could delay its deployment preparations.
Initially planned for shipment in the fourth quarter, the delivery schedule for the B20 may now be in jeopardy due to new worries about expanded export controls under consideration by Washington. The B20, a modified version of the powerful Blackwell B200 GPU, was developed by Nvidia for Chinese customers.
Despite its limited computational capabilities, the B20 has increased interconnection bandwidth, allowing many cards to be bound together to compensate for a single GPU's lesser computing capability, according to sources familiar with the topic.
Nvidia, a major participant in the technology industry, has been seriously damaged by US sanctions restricting China's access to innovative semiconductors. The business has previously experienced constraints on selling its A100 and H100 GPUs in China, prompting the development of modified versions, the A800 and H800, to evade the limitations. However, they were later forbidden from being exported to China.
US Secretary of Commerce Gina Raimondo warned chip companies against seeking to circumvent export laws, highlighting rigorous supervision over new chips. Nvidia, facing increasing competition from domestic Chinese chip manufacturers such as Huawei Technologies, has developed new GPUs such as the H20, L20, and L2 to maintain its market position in China.
While demand for these chips was initially low, sales of the H20, the most powerful of them, have skyrocketed in recent months. In contrast to chips obtained through unauthorised methods, officially procured chips enable access to critical maintenance services required for long-term support.
Nvidia expects to provide over 1 million H20 GPUs in China this year, producing an estimated US$12 billion in revenue. According to SemiAnalysis, Nvidia's H20 continues to surpass Huawei's 910B, the company's premier AI chip.
The B200, Nvidia's most recent AI computing platform, provides compute capability of up to 20 petaflops from 208 billion transistors. The Blackwell platform, which includes the B100, B200, and GB200 superchips, is expected to expand production in the fourth quarter, accounting for less than 10% of the whole high-end GPU market, according to TrendForce.
Furthermore, Nvidia is rumoured to be preparing to launch the GB20 server, which will include numerous B20 chips and CPUs, specifically for the Chinese market. This server design is similar to the GB200-based server, which includes a number of B200 chips and Arm-based Grace processors.
Nvidia faces uncertainty over B20 chip delivery amidst potential chip restrictions.
The company has encountered challenges due to US sanctions on China's access to advanced semiconductors.
Nvidia introduces new GPUs like H20 to compete with domestic Chinese chip manufacturers.
Source: SCMP