Archive — JP — japantimes
Nvidia and AMD to pay U.S. 15% of China chip revenue, says report
Nvidia and AMD have agreed to pay 15% of their China chip revenues to the U.S. government in exchange for export licenses, following trade tensions and licensing negotiations with the Trump administration. Nvidia will share revenue from its H20 chip, while AMD will do the same for its MI308 chips. This deal comes as Intel's CEO faces scrutiny over relations with China.
Key points
- Nvidia and AMD agreed to a 15% revenue share for chips sold in China as part of U.S. export licensing.
- Nvidia will share revenue from its H20 chip, while AMD will do the same for its MI308 chip.
- This deal follows the Trump administration's frozen advanced chip sales to China, escalating trade tensions.
- Nvidia claims compliance with U.S. export rules; AMD did not respond to inquiries.
- Intel's CEO may face additional pressure amid ongoing scrutiny related to Chinese business ties.
Why it matters
- The deal highlights ongoing U.S.-China trade tensions, particularly in tech and semiconductors.
- It reflects broader trends in 2025 where control over technology and trade regulations remains a critical issue.
- This situation is indicative of multinational companies navigating regulatory environments while focusing on market expansions.
The agreement underscores the complex interplay between U.S. trade policies and global tech companies, emphasizing the importance of compliance amid geopolitical tensions.