On Saturday, NVIDIA CEO Jensen Huang announced that the company would not release another Hopper chip for China after the current H20 model. This comes as US government restrictions tighten on advanced chip exports to the country.
Huang said, “It’s not Hopper because it’s not possible to modify Hopper anymore.” during a livestream by Taiwan’s Formosa TV News network. This decision follows revised US export limits on the H20 chip, which is currently the only AI chip NVIDIA can legally sell in China.
US Restrictions Impact Nvidia’s Plans
The US has curbied exports of cutting-edge chips to China since 2022, citing potential military uses. The latest restrictions on the H20 chip require an export license, pushing NVIDIA to adapt.
Huang, who recently visited China to meet officials, has often highlighted China’s importance, with the market contributing $17 billion or 13% of NVIDIA’s total sales in the fiscal year ended January 26.
To counter these challenges, NVIDIA plans to roll out a downgraded H20 chip version within the next two months. This modified chip will have reduced specs, like lower memory capacity, to comply with US rules. It will also maintain a presence in China, where local rivals like Huawei are gaining ground.
New R&D Focus in Shanghai
Adding to its efforts, NVIDIA is also scouting locations in Shanghai for a new research and development centre. This move shows the company’s commitment to China, a market Huang believes could grow to $50 billion for AI in the next few years.
While details on pricing or exact launch dates for the new chip remain unclear, Nvidia’s steps signal a strong push to stay relevant in China despite hurdles.