Nvidia and AMD to Pay 15% of China Chip Sales to US
U.S. semiconductor leaders Nvidia and AMD have agreed to channel 15% of their Chinese sales from certain high-end chips directly to Washington in exchange for permission to resume exports to the world’s second-largest economy, according to information obtained by the BBC.
The deal, described by industry analysts as unprecedented, marks a significant shift in the ongoing tech trade standoff between the United States and China. It follows months of tightened export restrictions on advanced chips used for artificial intelligence and other high-performance computing applications, imposed over national security concerns.
Nvidia’s H20 chip – developed specifically for the Chinese market after earlier curbs – and AMD’s MI308 are both covered by the agreement. U.S. authorities had effectively halted sales of the H20 in April, citing fears the hardware could accelerate China’s military AI capabilities.
While Nvidia has not shipped the H20 to China in recent months, chief executive Jensen Huang has been actively lobbying for a resolution. He reportedly met President Donald Trump last week. AMD has not commented publicly on the arrangement.
Critics, including former U.S. national security officials, have questioned the logic of allowing chip sales in exchange for a financial cut. “If there’s a genuine national security risk, a 15% payment doesn’t erase it,” said Deborah Elms, head of trade policy at the Hinrich Foundation.
A letter sent last month to Commerce Secretary Howard Lutnick by 20 security specialists warned that, although most H20 buyers in China are civilian firms, the technology could still be deployed in autonomous weapons, surveillance systems, and battlefield decision-making.
Industry analysts say the deal highlights the steep cost of regaining market access in an era of geopolitical rivalry. “This is a stark reminder of the financial and strategic uncertainty tech vendors face when politics and business collide,” said Charlie Dai of Forrester Research.
The revenue-sharing agreement comes as Washington and Beijing show tentative signs of easing broader trade tensions. China has loosened restrictions on rare earth exports, and the U.S. has relaxed rules on certain chip design tools. The two countries also agreed to a 90-day tariff truce in May, although an extension has yet to be finalised ahead of an August 12 deadline.
Meanwhile, President Trump has been pushing U.S. tech and manufacturing giants to expand domestic investment. Apple recently committed an additional $100 billion in U.S. spending, Micron has announced $200 billion in projects including a new Idaho plant, and Nvidia itself plans to invest up to $500 billion to build AI servers and supercomputers entirely on American soil.
Intel chief executive Lip-Bu Tan is also due to meet with Trump after the president called for his resignation over alleged ties to Chinese firms – claims Mr. Tan has dismissed as misinformation.
