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Nvidia, AMD To Pay 15% Of China Chip Sale Revenues To U.S., Official Says
Nvidia and AMD Agree to Share China Chip Revenues with U.S. Government
What’s Happening?
In a groundbreaking move, Nvidia and AMD have agreed to hand over 15% of their advanced chip sales revenue in China to the U.S. government. This unprecedented arrangement comes as a condition for securing export licenses for their high-tech semiconductors, including Nvidia’s H20 and AMD’s MI308 chips. The deal is part of a larger geopolitical strategy to control the flow of cutting-edge technology.
Where Is It Happening?
The agreement impacts global tech markets, particularly focusing on the transfer of advanced AI chips to China. The negotiations and payments will be coordinated between the U.S. government and the two chipmakers.
When Did It Take Place?
This arrangement was finalized recently, with details emerging on Sunday through a U.S. official’s statement to Reuters.
How Is It Unfolding?
– Nvidia and AMD must surrender 15% of their sales revenue from specific chip exports to China.
– The agreement is tied to obtaining U.S. export licenses for advanced semiconductors.
– The Trump administration is still determining how to utilize the collected funds.
– This move is seen as a strategy to restrict China’s access to high-end AI technology while allowing limited trade.
Quick Breakdown
– Nvidia and AMD will share 15% of China sales revenue with the U.S.
– The deal covers AI-focused chips like Nvidia’s H20 and AMD’s MI308.
– The agreement is a condition for securing U.S. export licenses.
– The Trump administration is yet to decide on the use of the collected revenue.
Key Takeaways
This agreement underscores the U.S.’s efforts to maintain technological dominance by controlling the export of advanced AI chips to China. By requiring a percentage of revenue from these sales, the U.S. is effectively leveraging its regulatory power to influence global tech trade. The move highlights the strategic importance of semiconductors in the ongoing tech rivalry between the U.S. and China.
“This deal is a overreach by the U.S., creating barriers where innovation should thrive freely.”
– Emma Carter, Tech Policy Analyst
Final Thought
The U.S.’s bold move to claim a share of Nvidia and AMD’s chip sales in China is a critical step in shaping global tech control. This strategy is likely to intensify the tech race, as both countries navigate the delicate balance between national security and economic growth.
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Source & Credit: https://www.huffpost.com/entry/nvidia-amd-china-chip-sale-usa_n_68994c60e4b07a70fa08c7af
