Nvidia is set to launch a revised version of its H20 AI chip in China by July, according to sources familiar with the matter. The move comes as the U.S. tightens export restrictions on advanced semiconductors, prompting Nvidia to reduce the chip’s capabilities—particularly its memory—to comply with new regulations.
Originally the most advanced AI chip Nvidia could legally sell in China, the H20 was recently restricted after U.S. officials informed the company that it now requires an export license. In response, Nvidia redesigned the chip to meet the updated technical limits.
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Major Chinese tech firms, including Tencent, Alibaba, and ByteDance, have been briefed on the new version. These companies had increased H20 orders amid rising AI demand, particularly from startups like DeepSeek. Some partners may also adjust configurations further to stay within legal thresholds.
China accounted for about $17 billion, or 13% of Nvidia’s total revenue in the last fiscal year, marking its strategic importance. CEO Jensen Huang visited Beijing in April following the announcement of stricter U.S. policies, reaffirming the company’s commitment to Chinese clients.
Nvidia declined to comment on the upcoming launch, and the U.S. Commerce Department has yet to respond.
Previously, Nvidia reported a $5.5 billion write-down linked to unsold H20 chips due to policy shifts, contributing to a nearly 5% drop in its stock price.
