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AsianFin -- Leading semiconductor manufacturers Nvidia and AMD have agreed to transfer 15% of their revenue generated from chip sales in China to the U.S. government, according to a source familiar with the arrangement.
This deal is linked to obtaining export licenses necessary to sell their products in China, the world’s second-largest market.
Nvidia said that it complies with US regulations governing its global operations. Although the company has not shipped its H20 chips to China recently, it expressed hope that export controls would allow U.S. firms to remain competitive in China and globally.
AMD has yet to comment on the matter.
Per the agreement, Nvidia will remit 15% of revenues from its H20 chips sold in China, while AMD will do the same for its MI308 chip sales, as initially reported by the Financial Times.
The US government had previously banned sales of Nvidia’s H20 chips to China over security concerns, a restriction now set to be lifted. The H20 was originally developed for the Chinese market in response to 2023 US export controls and was effectively banned under the Trump administration earlier this year.
Nvidia CEO Jensen Huang has actively engaged with U.S. and Chinese officials to resume chip sales in China, reportedly meeting U.S. President Trump recently.
This move to restart chip exports occurs amid a gradual easing of U.S.-China trade tensions. Beijing has loosened rare earth export controls, and the U.S. has relaxed restrictions on chip design software firms in China.
Earlier this year, both countries agreed to a 90-day truce on tariffs, with ongoing talks but no confirmed extension ahead of the August 12 deadline.
Trump’s trade policies have pushed US companies to boost domestic investment. Recently, Apple announced an additional $100 billion investment in the U.S., supplementing a previous $500 billion commitment over four years. Memory chip maker Micron revealed plans for $200 billion in U.S. investments, including a new Idaho facility.
Nvidia itself plans to invest up to $500 billion in U.S.-made AI servers, aiming to build the nation’s first fully American-made AI supercomputers.
