Nvidia plans to release a downgraded version of its H20 AI chip in China by July, following new U.S. export restrictions that halted the original chip’s availability, according to three sources cited by Reuters. The move aims to preserve Nvidia’s foothold in one of its most vital markets, which accounted for $17 billion, or 13% of its revenue, in the fiscal year ending January 26.
The modified H20 chip will feature significantly reduced capabilities, including lower memory capacity. Sources say Chinese customers may still be able to tweak module configurations to optimize performance. The H20 was Nvidia’s most advanced chip previously allowed for Chinese export, but U.S. officials recently reclassified it, requiring a special license.
This downgrade is the latest in Nvidia’s ongoing efforts to comply with tightening U.S. regulations targeting China’s access to advanced semiconductor technology, primarily due to military concerns. CEO Jensen Huang visited Beijing in April to reaffirm the market’s importance to the company.
Nvidia accumulated $18 billion in H20 orders this year from major Chinese firms like Tencent, Alibaba, ByteDance, and startups such as DeepSeek. The upcoming downgraded chip will seek to meet this demand while adhering to U.S. export guidelines.
Source: Swifteradio.com
