Nvidia Corp is developing specialized semiconductor chips designed to comply with U.S. export restrictions while still being available for sale in the Chinese market, according to sources familiar with the matter.

The chips, referred to as "Groq chips" in the report, represent the company's latest effort to maintain access to China's lucrative market despite escalating trade restrictions on advanced semiconductor technology. The development comes as the Biden administration has implemented increasingly strict controls on the export of high-end chips to China, particularly those used in artificial intelligence applications.

Nvidia has not publicly confirmed the development of these specialized chips. The company has previously created modified versions of its processors to comply with U.S. export regulations, including less powerful variants of its flagship AI chips that meet government restrictions while still serving commercial markets.

The Chinese market has historically been significant for Nvidia's revenue, particularly in data center and AI applications. U.S. export controls have forced the company to navigate complex regulatory requirements while attempting to maintain business relationships in the region.

The semiconductor industry has faced mounting pressure as trade tensions between the U.S. and China have intensified, with advanced chip technology becoming a key focal point of national security concerns. Companies like Nvidia have had to balance compliance with government restrictions against maintaining access to global markets.