Technology/ Business: US strikes deal with Nvidia, AMD to tax China chip sales
According to BBC chipmakers Nvidia and AMD have agreed to pay the U.S. government 15% of their Chinese revenues in exchange for export licenses to sell AI chips to China. The deal follows strict U.S. export controls, imposed over national security concerns, which had barred sales of advanced semiconductors to Chinese firms.
Nvidia will pay the levy on its China-specific H20 chip, while AMD will contribute 15% of MI308 chip sales.
The arrangement has drawn criticism, with security experts warning that these chips could still boost China’s military AI capabilities.
A group of former Trump administration officials recently urged tighter restrictions, arguing the H20 could enable autonomous weapons and surveillance systems.
The agreement signals a compromise amid easing U.S.-China trade tensions. Beijing has loosened rare earth export controls, while Washington lifted restrictions on chip design software firms.
However, analysts call the revenue-sharing model a costly trade-off, reflecting heightened tech trade risks.
Meanwhile, Nvidia CEO Jensen Huang has lobbied for resumed China sales, meeting with former President Trump last week.
The deal aligns with Trump’s push for domestic investment Nvidia recently pledged $500 billion in U.S.-based AI projects.
As the August 12 tariff truce deadline nears, the chip levy underscores the fragile balance between economic interests and national security.
Source: bbc.com
