Investing.com-- Nvidia (NASDAQ: NVDA ) will start shipping a new artificial intelligence chip in line with U.S. export controls against China in the coming months, Nikkei Asia reported over the weekend, and will also eventually launch a modified version of its flagship Blackwell series in the country.

The new China AI chip will be a downgraded chip based on its last-gen Hopper lineup, and will not include high-bandwith memory (HBM), making it a downgrade from the current H20 chip Nvidia sells in the country.

The company is also preparing a Blackwell chip for Chinese markets, which will be launched later in 2025, the Nikkei report said, citing people with knowledge of the matter. The Blackwell chip will also not feature HBM, which is reportedly in line with U.S. export restrictions.

The plans for new Chinese chips come as Nvidia rushes to maintain its presence in the country, especially in the face of tighter U.S. restrictions on the export of AI tech to China.

Until earlier this year, Nvidia’s H20 chip was its best-selling product in the country, and was widely used by several major Chinese AI developers, including DeepSeek, Bytedance, Alibaba (NYSE: BABA ), and Baidu (NASDAQ: BIDU ).

The new restrictions, coupled with increased competition from local chipmakers such as Huawei, threaten Nvidia’s presence in China. The country still accounted for about 14% of Nvidia’s revenue in 2024, while CEO Jensen Huang recently said that the Chinese chip market could balloon into $50 billion over the coming years.