Chipmakers’ China Concession
Nvidia and AMD have agreed to a deal requiring them to remit 15% of their revenue from sales of advanced AI chips in China to the U.S. government, a U.S. official confirmed on Sunday, Reuters reports.
The Trump administration had halted Nvidia’s sales of its H20 chip to China last April, but permission to resume sales was granted last month. The U.S. Commerce Department has already begun issuing licenses for the sale of Nvidia’s H20 and AMD’s MI308 chips.
Nvidia stated that it “operates in the global market in compliance with U.S. regulations” and hopes the new export policy will keep America competitive. AMD declined to comment on the matter.
China’s Ministry of Foreign Affairs accused the United States of “using technology and trade issues to suppress” the country.
According to the Financial Times, the revenue-sharing condition was added as part of the export license requirements.
In its last fiscal year, Nvidia earned $17 billion from China, accounting for 13% of its total revenue. In 2024, AMD generated $6.2 billion in revenue from China, representing 24% of its total.
