The US semiconductor giant has notified major Chinese customers, including leading cloud computing services providers, that it aims to release the modified H20 chip in July, two of the sources said.
The downgraded H20 represents Nvidia’s latest attempt to maintain its presence in one of its most crucial markets, as Washington expands its efforts to restrict China’s access to advanced semiconductor technology.
The H20, which had been Nvidia’s most powerful AI chip cleared for Chinese sales, was effectively blocked from the market after US officials informed the company last month that the product would require an export licence.
Nvidia has formulated new technical thresholds, which will guide the development of the modified chip design. These specifications will result in significant downgrades from the original H20, including substantially reduced memory capacity, one of the sources said.
Another of the sources said downstream customers could potentially modify the module configuration to adjust the chip’s performance levels.
Nvidia declined to comment. The US Commerce Department did not immediately respond to a request for comment.
