As outlined in a recent filing from NVIDIA with the SEC, the US government has implemented a new requirement for companies to obtain a license for exporting H20 integrated circuits, as well as any other products that meet the same performance benchmarks. According to the filing, this move is intended to mitigate the risk of these products being utilized in, or diverted to, supercomputers in China. The license requirement extends beyond mainland China, also applying to the territories of Hong Kong and Macau, in addition to countries designated as D:5, as detailed in the .

The H20 chips currently represent the most advanced technology that can be sold to select international markets under existing laws, possessing sufficient power for artificial intelligence applications. NVIDIA had been seeking to maintain its customer base in China for these products, and it seemed last week that the company might have received a from new restrictions. Nevertheless, the new license requirement is expected to remain in effect indefinitely.

NVIDIA disclosed in its SEC filing that it anticipates reporting approximately $5.5 billion in charges related to “inventory, purchase commitments, and related reserves” associated with the H20 circuits in its current fiscal quarter’s results.