Nvidia and AMD have agreed to give 15% of their revenues from chip sales in China to the U.S. government. This unusual arrangement was brokered to secure export licenses for their AI-focused semiconductors, Nvidia’s H20 and AMD’s MI308.
The move follows Trump’s threat of 100% tariffs on semiconductor imports unless companies manufacture domestically.
The U.S. had previously banned H20 chip exports to China in April but reversed the decision last month, allowing sales under this new revenue-sharing condition.
Nvidia CEO Jensen Huang reportedly met with Trump to finalize terms.
The Commerce Department began issuing licenses last week, reopening access to a key market for both firms.
Nvidia stated:
“We follow rules the U.S. government sets for our participation in worldwide markets,” while AMD has yet to comment.
Analysts are divided, some see this as a strategic compromise, others as a precedent-setting penalty that blurs lines between trade and national security.
The Trump administration has not disclosed how the collected revenue will be used.
(source cnbc.com)
—Agencies
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