Nvidia, AMD to Share 15% of China Chip Sales Revenue With US Government

Nvidia Corp. and Advanced Micro Devices Inc. (AMD) have agreed to pay 15% of their revenues from semiconductor sales in China to the United States government, according to a report by the Financial Times.

Credit: NVIDIA

The arrangement is a condition for obtaining export licences for their chips, Nvidia’s H20 and AMD’s MI308, which were granted last week.

A U.S. official cited in the report said the Trump administration has not yet decided how the collected funds will be used.

The U.S. Commerce Department began issuing licences to Nvidia last week, allowing the company to resume exports of its H20 chips to China.

Last month, the United States reversed an April ban on selling the H20 chip to China.

Credit: NVIDIA

Nvidia had designed the H20 chip specifically for the Chinese market to comply with export controls introduced during the Biden administration.

A spokesperson for Nvidia said the company adheres to U.S. government rules for global market participation.

“While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide,” the spokesperson said.

AMD has not commented on the agreement.

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• Nvidia and AMD will pay 15% of China chip sales revenue to the U.S.

• The deal is tied to export licences for Nvidia’s H20 and AMD’s MI308 chips

• Licences were granted last week after a prior ban was lifted in May

Source: REUTERS