NVIDIA Reportedly to Launch Downgraded H20 Chip in July

According to three informed sources, NVIDIA is preparing to launch a downgraded version of its H20 AI chip in China within the next two months, following new U.S. export restrictions on high-performance semiconductors.

Two of the sources revealed that NVIDIA has notified key clients in China—including major cloud computing companies—about its plan to release the adjusted H20 chip as early as July. The original H20 was NVIDIA's most powerful AI chip legally available for the Chinese market. However, U.S. officials recently informed the company that this model now requires an export license, effectively barring it from shipment to China.

One source noted that the updated H20 chip will feature significantly reduced performance, with a notable drop in memory capacity compared to the original. Another added that some customers may need to reconfigure their systems or modules to accommodate the lower performance profile of the revised chip.

China remains a critical revenue source for NVIDIA. In the fiscal year ending January 26, the Chinese market contributed $17 billion—13% of the company's total sales.

Just days after the U.S. government imposed new licensing requirements on the H20 chip last month, NVIDIA CEO Jensen Huang visited China. During meetings with Chinese officials, Huang emphasized the strategic importance of China as a core market for the company's AI technology.

Reports suggest that NVIDIA has already accumulated $18 billion worth of H20 orders since January. In response to evolving U.S. export controls, NVIDIA is reportedly redesigning its AI chips to ensure continued compliance. Major Chinese technology companies—including ByteDance, Alibaba, and Tencent—have been briefed on the updated plans.

Prototypes of the redesigned chips could become available as early as June. Meanwhile, NVIDIA's new Blackwell series, developed specifically for the Chinese market, is still under development.