Nvidia and AMD’s ‘special treatment’ shakes up the global chip supply chain

**U.S. Waivers for Nvidia and AMD Spark Global Chip Industry Shake-Up**

What’s Happening?

U.S. officials have allowed Nvidia and AMD to export advanced AI chips to China, provided they share a portion of their sales. This unprecedented move has sent shockwaves through the tech and geopolitical landscapes, raising questions about fairness and supply chain dynamics.

Where Is It Happening?

The decision affects global semiconductor markets, with ripple effects in the U.S., China, and other major tech hubs. The shift primarily impacts EUV lithography technology, critical for advanced chip manufacturing.

When Did It Take Place?

The announcement followed prolonged negotiations and was made public in mid-July 2024.

How Is It Unfolding?

– Nvidia and AMD gain unprecedented access to Chinese markets, bolstering their revenue streams.
– Other U.S. and international chip manufacturers demand similar waivers, citing unfair competition.
– China’s tech sector sees a potential boost, but with strings attached.
– Analysts predict tighter scrutiny of chip exports in the near future.
– The U.S. positions itself strategically, balancing tech supremacy with economic gains.

Quick Breakdown

– Only Nvidia and AMD granted waivers to export advanced AI chips to China.
– U.S. secures revenue share from sales made under the waiver.
– Move sparks debate on fairness in the global tech industry.
– Potential ripple effects include backlash from competitors and altered trade policies.

Key Takeaways

The U.S. decision to favor Nvidia and AMD sets a risky precedent that could reshape the semiconductor industry. By allowing sales to China in exchange for a revenue cut, the U.S. aims to maintain control over critical tech while fostering economic growth. However, this move threatens to disrupt the fairness of the global market, as other companies push for similar concessions.

“This deal is a double-edged sword. While it benefits Nvidia and AMD in the short term, the long-term impact on global trade and innovation could be seismic.”
– Dr. Li Wei, Semiconductor Analyst

Final Thought

The U.S. government’s exclusive waivers for Nvidia and AMD expose deeper tensions in the global chip industry. While this move may secure economic gains in the short term, it risks alienating other players and destabilizing trade relations. The tech world now watches closely to see how this high-stakes gamble plays out.

Source & Credit: https://fortune.com/2025/08/16/us-china-chip-deal-nvidia-amd-global-chip-supply-chain/