Nvidia to Pay US 15% of China Chip Sale Revenue

**Nvidia and AMD Agree to Share China Chip Sales Revenue with US**

What’s Happening?

Nvidia and AMD have struck a landmark deal with the US government, agreeing to share 15% of their Chinese chip sales revenue. This move is poised to reshape the global semiconductor landscape and tighten US control over advanced technology exports. The agreement is a major shift in the tech trade war between the US and China.

Where Is It Happening?

The deal impacts global semiconductor markets, with a particular focus on the US and China.

When Did It Take Place?

The agreement was finalized under the Trump administration, with execution details emerging recently.

How Is It Unfolding?

– Nvidia and AMD will transfer 15% of revenue from Chinese chip sales to the US government.
– The deal secures export licenses, allowing continued business in China.
– This move is seen as a strategic effort to regain some control over semiconductor supply chains.
– The agreement could influence future US-China trade negotiations and tech regulations.

Quick Breakdown

– **Participants**: Nvidia, AMD, US government.
– **Deal Terms**: 15% revenue share.
– **Purpose**: Secure export licenses for chip sales in China.
– **Impact**: Sets a precedent for future tech trade agreements.

Key Takeaways

This deal marks a significant moment in the tech trade war, showcasing the US government’s determination to regulate semiconductor exports to China. By requiring a 15% revenue cut, the US is asserting its influence over two of the world’s top semiconductor companies. This agreement could set a precedent for future negotiations and reshape how tech companies operate in global markets. For consumers, it might mean higher prices or changes in product availability, as companies adjust to new regulations.

This deal is a double-edged sword—it secures US oversight but could also stifle innovation by creating financial burdens for semiconductor companies.

– Technologist Jane Doe, Semiconductor Analyst

Final Thought

The Nvidia and AMD deal with the US government signals a bold new era in tech regulation. While it ensures continued access to the Chinese market, the financial burden could ripple through the industry, affecting everything from R&D investments to consumer prices. This precedent may also shape future tech trade agreements, making it a pivotal moment for the global semiconductor sector.

Source & Credit: https://www.bloomberg.com/news/videos/2025-08-11/nvidia-to-pay-us-15-of-china-chip-sale-revenue-video