Nvidia Delays Launch of China AI Chip Due to Integration Issues
Nvidia is reportedly delaying the launch of its new AI chip designed for China to comply with US export rules.
Nvidia's H20 Chip Delayed
Nvidia is delaying the launch of a new artificial intelligence chip called the H20 that is designed to comply with US export restrictions, according to Reuters.
The delay is due to issues server manufacturers are facing while integrating the semiconductor into their products.
Nvidia shares were down around 0.5% on what will be a shortened trading day in the US.
Impact of Export Rules
In October, the US government tightened export curbs on AI chips to China, including Nvidia's A800 and H800 chips.
The delay to the H20 chip could be a setback for Nvidia, as it generates about a fifth of its revenue from China and faces competition from local players like Huawei.
The company warned that sales in regions affected by export restrictions will decline significantly in the current quarter.
Other Export-Compliant Chips
In addition to the H20 chip, Nvidia is also preparing to launch two other export-compliant chips known as the L20 and L2, according to Reuters.
This diversification may help mitigate the impact of export restrictions on Nvidia's business.
Nvidia was not immediately available for comment when contacted by CNBC.
