Nvidia, AMD to transfer fifteen percent of China sales revenue to US
(MENAFN) US semiconductor companies Nvidia and AMD have reportedly agreed to transfer 15% of their revenue from sales in China to the US government in return for export licenses, according to multiple reports citing sources familiar with the matter.
The arrangement involves Nvidia’s China-specific H20 graphics processing unit and AMD’s MI308 chip, both restricted by US regulators in April amid rising tensions between Washington and Beijing. At that time, officials expressed concerns that the chips could enhance China’s military artificial intelligence capabilities.
The reported deal comes a month after the US announced that Nvidia could resume sales of H20 chips in China. However, the necessary export licenses had not been issued at that point. The US Commerce Department reportedly began granting H20 licenses last Friday, shortly after Nvidia CEO Jensen Huang met with President Donald Trump. Licenses for AMD’s MI308 chip were also reportedly approved.
Nvidia told the Financial Times, “We follow rules the US government sets for our participation in worldwide markets,” without confirming or denying the agreement.
The deal could potentially channel over $2 billion to US authorities, though officials have not yet decided how the funds will be used. Analysts at Bernstein Research project Nvidia’s China sales could exceed \$15 billion this year, with AMD’s sales reaching around $800 million by year-end.
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