Islamabad, 9 May, 2025: Nvidia plans to release a scaled-down version of its H20 artificial intelligence chip for China in the next two months.
This decision was made following U.S. export restrictions on the original model, three sources familiar with the matter told Reuters.
The U.S. chipmaker has informed key Chinese clients, including top cloud service providers, that the modified chip is expected to be available by July, two of the sources said.
This move comes as Nvidia seeks to maintain its position in Chinese market following Trump’s newly introduced restrictions on advanced semiconductor exports.
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The original H20, which is the most powerful AI chip approved for sale in China, was recently blocked unless Nvidia obtains an export license.
The revised H20 will feature significantly reduced capabilities, including lower memory capacity, in line with newly developed technical limits designed to comply with U.S. rules.
One source noted that customers may still be able to alter chip configurations to increase performance.
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China remains a vital market for Nvidia, generating $17 billion in revenue, 13% of the company’s total sales, in the fiscal year ending January 26.
Highlighting that importance, Nvidia CEO Jensen Huang visited Beijing last month shortly after U.S. authorities tightened export controls.
During the visit, Huang reaffirmed China’s role as a key market for Nvidia’s growth.
