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Nvidia modifies H20 chip for China to overcome US export controls: Reuter

  • Nvidia is preparing to launch an updated variant of its H20 AI chip in China by July 2025, following restrictions that prevented the original model from entering the market.
  • The US government tightened export controls last month, requiring Nvidia to obtain a license to sell the H20 chip in China.
  • Nvidia redesigned the H20 chip to comply by significantly reducing memory capacity and overall performance, notifying major Chinese clients including Tencent and Alibaba.
  • The company disclosed a $5.5 billion charge for unsold H20 processors and saw its stock fall nearly 5%, reflecting regulatory concerns.
  • This adjustment shows Nvidia's effort to maintain its business in China despite US export restrictions that limit advanced semiconductor access.
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Business Times broke the news in on Friday, May 9, 2025.
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