BEIJING, April 16 (Reuters) - Intel ( INTC ) will

release two AI chips with reduced capabilities for the Chinese

market, in order to comply with U.S. export controls and

sanctions.

The two chips, HL-328 and HL-388, are scheduled for launch

in June and September, respectively, according to a white paper

on the company's website dated April 12.

Tech outlet The Register first reported the plans from the

white paper.

Rival Nvidia ( NVDA ) also has plans for three

China-specific chips after the United States late last year

tightened a rule capping the capabilities of AI chips that can

be shipped to China.

Intel's ( INTC ) China-specific AI chips are based on the company's

latest Gaudi 3 product line, which was unveiled on April 9, with

similar hardware features including on-chip memory,

high-bandwidth memory, and interface standards.

However, to comply with the export control regulations, the

performance of the chips will be significantly reduced.

One of Nvidia's ( NVDA ) China-specific chips, the H20, is set to be

delivered in small batches in the first quarter of 2024, with

larger quantities expected from the second quarter, Reuters

reported in January.