Nvidia to Launch Modified H20 AI Chip in China Amid U.S. Export Curbs

Nvidia is adjusting its product offerings in China to comply with U.S. export restrictions on advanced semiconductor technologies. The company plans to launch a revised version of its H20 AI chip, specifically tailored for the Chinese market, by July 2025. The move comes after the original H20 chip—once the most powerful AI chip Nvidia could legally sell in China—was placed under tighter U.S. controls requiring special export licenses.

To meet these new regulations, Nvidia has reduced the capabilities of the H20 chip, including lowering its memory capacity and overall performance. However, some configurations may still allow for performance tuning, offering Chinese tech firms a level of flexibility. This compromise is intended to ensure compliance with U.S. policies while still serving key customers like Tencent, Alibaba, and ByteDance, who are ramping up their purchases of AI chips due to growing demand for affordable, efficient AI computing power.

Despite geopolitical tensions, China remains a major revenue source for Nvidia, contributing approximately $17 billion—or 13%—of its total earnings in the last fiscal year. Recognizing the market’s importance, Nvidia CEO Jensen Huang recently traveled to Beijing to meet with Chinese officials and business leaders. Reports indicate Nvidia has already secured $18 billion worth of orders for the H20 chip since January 2025.

Nvidia’s strategy highlights its efforts to maintain a strong foothold in the Chinese AI sector while navigating complex U.S.-China trade dynamics. By redesigning its products to align with regulatory guidelines without fully exiting the market, Nvidia demonstrates its adaptability and focus on sustaining international market presence in the highly competitive AI hardware industry. This case also reflects broader challenges global tech companies face in balancing innovation, market demands, and geopolitical restrictions.