Nvidia and AMD agree to pay 15% of chip sales revenue from China to the US government

Nvidia and AMD agree to pay 15% of chip sales revenue from China to the US government

Time: 1 day ago
By Adam Hancock and Peter Hoskins (BBC Singapore)

Agreement Summary

U.S. chip giants Nvidia and AMD have agreed to pay the U.S. government 15% of their revenue from sales of certain chips in China in exchange for export licenses.

  • Nvidia is required to pay 15% on its H20 chip sales revenue in China.
  • AMD is required to pay a 15% tax on sales revenue of the MI308 chip in China.
    The agreement, described as "unprecedented", was first reported by the Financial Times and confirmed by the BBC.

background

  • The United States previously banned the export of high-performance chips to China, especially those used in artificial intelligence (AI), on the grounds of national security .
  • The H20 chip was developed by Nvidia specifically for the Chinese market and was launched in 2023 after the Biden administration implemented export restrictions.
  • In April 2025, the Trump administration further banned the sale of the chip in China.

Responses from all parties

  • President Trump calls H20 chip "old" and refutes security concerns.
  • Nvidia : It said it would abide by the US government's market rules and hoped that export restrictions would enable the United States to remain competitive in China and globally.
  • AMD : Has not yet responded to media inquiries.
  • Experts and investors :
    • Deborah Elms (Wheeling Foundation): Charging 15% does not eliminate the national security problem.
    • Some investors called it a "shakedown," while others saw it as equivalent to an export tax, which is expressly prohibited by the U.S. Constitution.
    • Peter Harrell (Carnegie Endowment for International Peace): This sets a dangerous precedent.

safety concerns

  • Twenty security experts wrote to the U.S. Secretary of Commerce, pointing out that although the H20 chip is mainly sold to Chinese civilian companies, it may be used by the military, including:
    • Autonomous weapon systems
    • Intelligence Monitoring Platform
    • Accelerated battlefield decision-making

Analysis and Impact

  • Charlie Dai (Forrester analyst) : This agreement highlights that amid the technological tensions between China and the United States, companies have to pay a high price to enter the Chinese market and face financial pressure and strategic uncertainty.
  • Beijing : Criticized the United States for abusing export controls and accused it of unilateral bullying.

Related events

  • Intel CEO Tony Tamblyn recently met with Trump to discuss America's leadership in technology and manufacturing.
  • Trump had previously called for his resignation, citing alleged conflicts of interest with China; Tan denied the allegations and called them "false information."

Source: BBC

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