Media reports US chipmakers paying Washington for trade with China
(MENAFN) US semiconductor giants 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 news sources. The arrangement covers Nvidia’s H20 graphics processing unit designed for the Chinese market and AMD’s MI308 chip, both previously restricted by US regulators over concerns that they could enhance China’s military AI capabilities.
The reported deal follows Washington’s announcement last month allowing Nvidia to resume H20 sales in China, though export licenses had not yet been formally issued at that time. Licenses for both Nvidia and AMD were reportedly granted shortly after a meeting between Nvidia CEO Jensen Huang and President Donald Trump. Nvidia confirmed it follows US government regulations but declined to comment on the specifics of the agreement.
The arrangement could direct over $2 billion to the US government, though how the funds will be used remains undecided. Analysts project Nvidia’s China sales could exceed $15 billion this year, while AMD may reach $800 million.
The deal comes amid ongoing debate over US export restrictions, with critics warning that the H20 chip could bolster China’s military AI capabilities and erode US competitiveness in the technology sector.
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