Nvidia Revamps H20 Chip to Circumvent U.S. Export Restrictions

Nvidia alters H20 chip for China to navigate U.S. export restrictions — Nvidia unveils a redesigned version of its H20 AI chip to comply with U.S. export controls while retaining access to key Chinese markets.

After U.S. export limitations on the original model, Nvidia intends to deploy a modified version of its H20 AI processor for China within the next two months, three people with knowledge of the situation told Reuters.

According to two of the people, the U.S. chipmaker has informed key Chinese clients, including top cloud computing companies, that it plans to ship the updated H20 chip in July.

In light of Washington’s growing efforts to limit China’s access to cutting-edge semiconductor technology, Nvidia’s most recent attempt to preserve its position in one of its most important markets is represented by the reduced H20.

According to a different source, downstream clients could be able to alter the module settings to change the chip’s performance levels. Nvidia chose not to respond. The U.S. Commerce Department did not immediately answer a request for comment.

13% of Nvidia’s total sales, or $17 billion, came from China for the fiscal year that concluded on January 26. Days after U.S. officials disclosed the new export license demands for the H20 chip, Nvidia CEO Jensen Huang traveled to Beijing last month to highlight the strategic significance of the nation.

What are the benefits of this Revamp?

Billions Secured, Billions at Risk

Chinese internet behemoths like Tencent, Alibaba, and ByteDance are apparently demanding the H20 despite its performance issues. Why? since Nvidia’s architecture is still more effective and affordable than many domestic options, and since the need for AI infrastructure is growing rapidly. Even a “limited” chip can be dominant, as evidenced by the $18 billion in orders Nvidia has supposedly received since January 2025 alone.

New technological thresholds developed by Nvidia will direct the creation of the updated chip designs. According to one of the sources, these specifications will lead to major downgrades from the original H20, including a significantly smaller memory capacity. According to a different source, downstream clients could be able to alter the module settings to change the chip’s performance levels.

Due to worries about possible military uses, the United States has prohibited shipments of Nvidia’s most advanced chips to China since 2022. In October 2023, Washington strengthened export rules, which led to the introduction of the H20.

According to a Reuters report from early this year, Chinese tech behemoths Tencent, Alibaba, and ByteDance, the parent company of TikTok, increased their orders for H20 chips in response to the growing demand from startups like DeepSeek for affordable AI models. As reported by Reuters last month, Nvidia has amassed $18 billion in H20 orders since January.

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Rabia Majeed

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With a focus on technical and SEO writing, Rabia Majeed is a… With a focus on technical and SEO writing, Rabia Majeed is an accomplished content writer and strategist. She produces readable, interesting, and search engine optimized content that benefits readers and ranks highly in search results. She assists brands in expanding through astute, impactful content strategies and has a solid understanding of digital trends.