Nvidia Develops Compliant Chips Amidst US-China Trade Tensions: H20, L2 and L20

Nvidia has developed the H20, L2, and L20 chips to comply with updated U.S. chip-export controls aimed at curbing China's technological advancements. These chips are modified versions of Nvidia's more powerful GPUs, such as the H100, and are designed to deliver AI capabilities while adhering to the restrictions. China and Hong Kong represent Nvidia's fourth-largest market, accounting for about 13% of its annual revenue, or $17.1 billion, for fiscal year 2025. The Trump administration recently announced new trade restrictions against Chinese tech firms, intensifying concerns over Nvidia's ability to continue selling these specially designed chips in the region.