Nvidia, AMD Strike Deal to Pay U.S. for Exporting Chips to China
(MENAFN) US semiconductor leaders Nvidia and AMD have struck a deal to hand over a share of their Chinese chip sales revenues to the US government, media revealed Sunday.
Under this unprecedented arrangement, the US will grant export licenses for Nvidia’s H20 and AMD’s MI308 chips in China in return for 15% of the companies’ Chinese market revenues, media reported.
This development comes amid heightened tensions around the export of Nvidia’s H20 chips to China.
In April, the US government tightened restrictions, barring Nvidia from shipping H20 chips to China without an export license “for the indefinite future,” marking an escalation in the ongoing tech conflict with Beijing.
Yet last month, the Trump administration shifted direction, announcing plans to lift these licensing hurdles.
The dispute intensified after Chinese authorities accused Nvidia’s H20 chips of embedded tracking, location monitoring, and remote shutdown capabilities.
Nvidia strongly denied these allegations. Last week, the company asserted, “NVIDIA GPUs do not and should not have kill switches and backdoors,” via a blog post by its Chief Security Officer, David Reber.
Despite Nvidia’s denials, official Chinese media on Sunday labeled the H20 chip “unsafe” and urged consumers to avoid AI processors intended for the Chinese market.
A representative of a broadcaster accused the US government of attempting to embed “backdoors” in the H20 chip.
The broadcaster stated, “As consumers, we certainly have the option not to buy a chip when it is neither advanced, safe, or environmentally friendly.”
Media also disclosed that Nvidia CEO Jensen Huang met with President Donald Trump last week amid these developments.
In a statement to media, Nvidia affirmed, “We follow rules the US government sets for our participation in worldwide markets.”
Meanwhile, Trump warned last week of potential tariffs up to 100% on semiconductor and chip exports—except for those produced domestically in the US.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
