Nvidia, AMD to pay 15% of China chip sale revenues to US: report

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Nvidia and AMD have reached an agreement with the US government to share 15% of their revenues from chip sales in China in order to secure export licenses for their semiconductors, as reported by the Financial Times on Sunday.

According to a US official cited in the report, this revenue sharing arrangement applies to Nvidia’s H20 chips and AMD’s MI308 chips. The Trump administration has yet to decide how the money will be utilized.

Both chipmakers agreed to this condition as a prerequisite for obtaining export licenses for the Chinese market, which were granted last week, as per the FT report.

Nvidia follows the rules set by the US government for its participation in markets around the world, a spokesperson said. gguy – stock.adobe.com

Nvidia complies with the regulations established by the US government for its engagement in global markets, as stated by an Nvidia spokesperson in an email to Reuters. “While we haven’t shipped H20 to China for months, we hope export control rules will enable America to compete in China and globally.”

AMD has not yet responded to a request for comment.