BEIJING (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.