Overview

• Nvidia plans to release a modified version of its H20 AI chip for China by July 2025, following new U.S. restrictions that effectively banned the original model.
• The revised H20 chip will include substantial downgrades, such as reduced memory capacity, to comply with U.S. export licensing requirements.
• Major Chinese customers, including cloud providers like Tencent and Alibaba, have been notified of the upcoming product launch.
• China accounted for $17 billion, or 13% of Nvidia's revenue in fiscal 2024, with $18 billion in H20 orders accumulated since January 2025.
• The move highlights ongoing geopolitical tensions in the semiconductor industry, as Nvidia seeks to balance U.S. compliance with its critical presence in the Chinese market.