Nvidia Corporation (NASDAQ:NVDA) plans to delay the launch of an artificial intelligence chip in China until the first quarter of 2024, according to reporting from Reuters on Friday.
The chip is the H20, the most powerful of three chips that the company developed to comply with US export restrictions with China in mind.
However, the delay could make it more difficult for the chipmaker to compete with Huawei and others in the country.
The other two China-focused chips are the L20 and L2. Nvidia said the former is expected to launch on schedule but did not provide an update on the latter, according to reports.
Developing chips specifically for China has become a priority after Nvidia was barred from shipping its A800 and H800 AI chips by US export rules. Those chips were already meant as alternatives for the Chinese market after the US initially banned the export of advanced microchips to China a month earlier.
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