Nvidia, AMD agree to pay 15% of China chip sales to U.S. government

# U.S. Secures Unusual 15% Revenue Share from Nvidia, AMD’s China Sales

What’s Happening?

In an unprecedented move, U.S. chipmakers Nvidia and AMD have agreed to share 15% of their China sales revenue with the U.S. government. This unusual condition is a prerequisite for securing export licenses to continue business in the region, raising eyebrows and debates about the future of tech trade.

Where Is It Happening?

The agreement impacts the global semiconductor industry, particularly U.S.-based companies operating in China, the world’s largest semiconductor market.

When Did It Take Place?

The arrangement was recently confirmed, with specifics emerging from sources familiar with the matter. The timeline for implementation remains unclear.

How Is It Unfolding?

– Nvidia and AMD agreed to the revenue share as part of export license negotiations.
– The U.S. seeks to recoup funds from sales tied to national security concerns.
– The unusual agreement bypasses traditional export control measures.
– Industry experts predict potential ripple effects on global tech trade.

Quick Breakdown

– 15% revenue share on China sales required for export licenses.
– Unprecedented condition, deviating from standard export controls.
– Aims to address national security while allowing U.S. companies to operate in China.
– Potential long-term impact on global tech trade dynamics.

Key Takeaways

This agreement marks a significant shift in how the U.S. approaches tech exports to China. Unlike traditional measures focused on national security, this deal leverages revenue sharing as a condition for market access. It raises questions about the future of U.S.-China tech relations and how other countries might respond. The move could set a precedent for future negotiations involving sensitive technologies.

“Revenue-sharing arrangements like this could destabilize global trade negotiations and set a risky precedent for future tech agreements.”

– Dr. Elenaods Gina, Tech Trade Analyst

Final Thought

The agreement between Nvidia, AMD, and the U.S. government is a bold but controversial strategy to manage tech exports to China. While it ensures continued access to a crucial market, the implications for global trade and future negotiations remain uncertain. If successful, it could redefine how tech companies navigate geopolitical tensions.

Source & Credit: https://www.washingtonpost.com/technology/2025/08/10/nvidia-amd-china-chips-deal-trump/