Nvidia and AMD Agree to Share China Chip Revenue with US for Export Licenses
Nvidia and AMD will pay 15% of China semiconductor sales revenue to the US government. This Trump administration deal secures export licenses for H20 and MI308 chips, maintaining market access.
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Overview
Nvidia and AMD have agreed to remit 15% of their semiconductor sales revenue from China directly to the US government as part of a new arrangement.
This financial commitment is a key component of a deal negotiated with the Trump administration, specifically for obtaining essential export licenses.
The revenue-sharing mandate applies to the sales of specific advanced chips, namely the H20 and MI308 models, within the Chinese market.
Nvidia has already successfully acquired the necessary licenses to export its H20 chips to China, adhering to current US export regulations.
This agreement strategically allows both chip manufacturers to retain vital access to the significant Chinese market, navigating existing trade restrictions.
Analysis
Center-leaning sources frame this story by highlighting the "unusual" nature of the agreement and emphasizing bipartisan concerns over its legality and national security implications. They extensively quote critics who question the deal's constitutionality and warn against risking national security for revenue, while providing less detailed counter-arguments from proponents of this specific revenue-sharing mechanism.