Nvidia and AMD to Remit 15% of China Revenue to US Government
Chip manufacturers Nvidia and AMD consent to a new revenue-sharing agreement with the U.S. while navigating Sino-American trade tensions.
Nvidia and AMD have agreed to pay 15% of their semiconductor sales from China to the U.S. government as part of a deal to obtain export licenses. Nvidia's CEO, Jensen Huang, met with President Trump last week to discuss the arrangement. According to sources, Nvidia will remit 15% from its H20 chip sales and AMD will contribute the same percentage from its MI308 chip revenues. This follows a prior imposition by Washington on exporting Nvidia’s H20 chips to China amid security concerns. Although a ban on these chips was implemented, recent developments indicate a potential easing of trade tensions, with both nations engaging in discussions and previous agreements on tariffs.
The sales of H20 chips, originally designed for the Chinese market, faced restrictions under both the Trump and Biden administrations, prompting extensive lobbying by NVIDIA's Huang for a sales resumption. The agreement surfaces as both nations have engaged in dialogue to reduce trade barriers, highlighting a cautious return to trading relations.
This revenue-sharing pact reflects ongoing adjustments in Sino-U.S. interactions, impacting the semiconductor industry and influencing the global tech landscape.
