Nvidia is set to launch a modified version of its H20 artificial intelligence chip for the Chinese market in July, as the U.S. government continues to impose stricter export restrictions on advanced semiconductor technology. The new version will be downgraded in performance to comply with the latest U.S. regulations, including a significant reduction in memory capacity.
The H20 chip, once Nvidia’s most advanced AI offering available in China, was essentially prohibited last month when U.S. officials informed the company that it would now require an export license. In response, Nvidia has redesigned the chip to meet the new technical thresholds, while still providing an AI solution for Chinese clients.
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Nvidia has notified major Chinese customers such as Tencent, Alibaba, and ByteDance about the revised chip, which will address the rising demand for AI products from companies like DeepSeek. Some partners may also be able to further adjust the chip’s performance to suit the new export limitations.
China, a crucial market for Nvidia, accounted for around $17 billion in revenue (13% of total sales) in the fiscal year ending January 26. Despite the challenges, Nvidia’s CEO Jensen Huang visited Beijing in April to reaffirm the company’s commitment to its Chinese customers, following Washington’s announcement of stricter licensing rules.
Nvidia has not commented publicly on the revised chip or its release date, and the U.S. Commerce Department has yet to respond. Following the news of export restrictions, Nvidia reported a $5.5 billion charge related to unsold H20 processors and saw a nearly 5% drop in its stock, reflecting investor concerns over regulatory pressures.
