US taxes put a 15% cut on Nvidia and AMD chip sales to China

What’s Happening?

The U.S. has secured a deal with Nvidia and AMD, requiring a 15% cut of their chip sales to China. This arrangement is aimed at protecting American interests in the semiconductor market while still allowing sales of older chip models to China.

Where Is It Happening?

The agreement impacts global semiconductor trade, particularly between the U.S. and China, with Nvidia and AMD navigating export regulations.

When Did It Take Place?

The terms of the agreement were confirmed during a press conference earlier this week.

How Is It Unfolding?

• Nvidia and AMD must forfeit 15% of their revenue from chip sales to China.
• The arrangement was struck to secure export licenses for “obsolete” chip models.
• President Trump initially sought a 20% cut before settling for 15%.
• This deal represents a balance between U.S. national security and commercial interests.

Quick Breakdown

• The U.S. gains revenue from tech sales to China.
• Export licenses are granted for older chip models.
• Nvidia and AMD must comply with U.S. export controls.

Key Takeaways

This agreement shows how geopolitical tensions influence global tech trade. By taking a cut of chip sales to China, the U.S. aims to preserve its technological edge while allowing American companies to remain competitive. The deal highlights how sanctions and export controls are reshaping the semiconductor industry.

“Such arrangements strike a delicate balance between economic interests and national security, yet they also raise questions about long-term trust in international tech partnerships.”
– Dr. Li Wei, Semiconductor Policy Analyst

Final Thought

The U.S.’s 15% cut on Nvidia and AMD chip sales to China is a strategic move in the global tech rivalry. It ensures revenue while still allowing sales, but long-term implications for U.S.-China tech relations remain uncertain. This deal is a clear sign that the semiconductor industry will keep evolving under geopolitical pressures, with companies caught in the middle.

Source & Credit: https://www.bostonglobe.com/2025/08/11/business/nvidia-amd-ai-chips-china/

**US Strike: Nvidia & AMD to Share 15% China Sales with Government**

What’s Happening?

In an unprecedented move, US tech giants Nvidia and AMD strike a deal to hand over 15% of their Chinese chip sales revenue to the US government. This deal lets them sell advanced semiconductors to China, circumventing past restrictions. The agreement reshapes global tech trade dynamics and sparking debates on economic policy and corporate compliance.

Where Is It Happening?

The deal is centered in the United States, affecting international sales to China. The agreement impacts global semiconductor markets and geopolitical tech relations.

When Did It Take Place?

The deal concluded under the Trump administration. Exact timing isn’t disclosed, but development suggests impartial operations aimed at opening critical export pathways amid international tech tensions.

How Is It Unfolding?

– The US sets an unusual precedent by demanding a share of corporate revenues.
– Export licenses now hinge on this revenue-sharing agreement.
– The deal benefits the US government amid strained relations with China.
– Experts debate its long-term effects on tech cooperation and market competition.

Quick Breakdown

– Nvidia and AMD agree to surrender 15% of China chip sales revenue to the US government.
– The deal secures export licenses for advanced semiconductors to China.
– Trump administration initiated the agreement to ease trade tensions.
– Future similar deals may reshape global tech trade policies.

Key Takeaways

This agreement marks an unprecedented intersection of corporate compliance and government intervention in global trade. While it allows Nvidia and AMD to tap into China’s lucrative market, the revenue-sharing clause raises concerns about corporate autonomy and government overreach. The move could signal a new playbook for managing tech exports amidst geopolitical tensions, influencing future international trade deals and the balance of power in the semiconductor industry.

This deal sets a dangerous precedent, where governments dictate corporate revenue sharing, eroding market freedoms.
– Lisa Chen, Tech Policy Analyst

Final Thought

**The Nvidia and AMD deal highlights the shifting landscape of tech trade and government influence. While it resolves immediate export challenges, the long-term implications for global markets and corporate sovereignty remain uncertain. This model could redefinetech trade policies, leaving both opportunities and risks in its wake.**

Source & Credit: https://www.usnews.com/news/business/articles/2025-08-11/nvidia-amd-to-pay-15-of-china-chip-sale-revenue-to-u-s-government

U.S. to Gain 15% Cut from Nvidia and AMD China Chip Sales

What’s Happening?

In a groundbreaking agreement, U.S. chip giants Nvidia and AMD have agreed to share 15% of their revenues from sales of advanced semiconductors to China with the U.S. government. This deal comes after recent export restrictions and is set to allow the companies to resume sales of key chip models to China.

Where Is It Happening?

The agreement impacts global semiconductor sales, particularly affecting the U.S. and China, with the revenue-sharing directly benefiting the U.S. government.

When Did It Take Place?

The export restrictions were imposed in April, but the details of the revenue-sharing agreement emerged in July.

How Is It Unfolding?

– The U.S. government suspended sales of advanced AI chips to China in April.
– Nvidia and AMD negotiated a deal to resume sales of the H20 and MI308 chips.
– A 15% revenue share from future sales will go to the U.S. government.
– The move aims to balance national security concerns with economic interests.

Quick Breakdown

– Companies: Nvidia, AMD
– Affected Products: H20, MI308 chips
– Revenue Share: 15% to the U.S. government
– Purpose: Secure export licenses for advanced semiconductors to China

Key Takeaways

This agreement marks a unique compromise where U.S. chipmakers facilitate trade with China while also ensuring some financial benefit to the American government. It underlines the complex geopolitical tensions surrounding semiconductor technology, which is critical for both economic and national security interests. The deal allows both sides to mitigate losses from the earlier export ban while addressing U.S. concerns about technological dominance.

The revenue-sharing agreement is a creative solution, but critics may question whether it sets a dangerous precedent for future tech trade negotiations. It’s a delicate balance between economic growth and national security.
– Linda Chen, Professor of International Trade

Final Thought

This unprecedented deal highlights the delicate balance between economic interests and national security in the tech industry. By allowing Nvidia and AMD to sell advanced chips to China while securing a revenue share for the U.S., the agreement may ease tensions but also raises questions about future trade policies. The world is watching to see how this model unfolds and whether it becomes a standard for tech trade.

Source & Credit: https://www.pbs.org/newshour/politics/under-new-unusual-agreement-u-s-will-get-a-15-cut-of-nvidia-and-amd-chip-sales-to-china