Nvidia plans to commence large-scale production of an artificial intelligence (AI) chip designed for China in the second quarter of 2024 in order to comply with US export rules.
Nvidia (NVDA.O) aims to begin the large-scale manufacture of an artificial intelligence (AI) chip built for China in the second quarter of 2024 to comply with U.S. export laws, according to two individuals familiar with the subject.
The H20 processor is the most powerful of three China-focused chips created by Nvidia to fulfill October’s limits.
It was supposed to be released in November, but that date was pushed back due to challenges with server manufacturers integrating the technology.
According to one source, the initial production volume will be limited, with Nvidia focusing on fulfilling orders for large customers.
It was stated that Chinese corporations are hesitant to purchase the downgraded H20 and are studying domestic options in the event that the US tightens restrictions again. Search engine leader Baidu (9888.HK) ordered AI chips from Huawei Technologies (HWT.UL) last year, signaling a shift away from Nvidia.
Nvidia intends to develop two other processors that will comply with the new constraints, in addition to the H20: the L20 and L2. The sale of any of the three has yet to be announced by the chipmaker.
It released a modified version of an advanced gaming chip meant to comply with the new laws in late December.
Nvidia is banking on the chips to help it maintain its market position in the country after tightened export restrictions in the United States prevented it from shipping goods such as its advanced A800 and H800 AI chips.
The A800 and H800 were launched as alternatives for Chinese consumers in November 2022, around a month after the United States first blocked sophisticated microprocessor and equipment shipments to China.
According to SemiAnalysis’ examination of the chips’ specifications, the H20, L20, and L2 incorporate the majority of Nvidia’s newest AI features, but with computational power reduced to comply with the new standards.
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