Chip Giants Nvidia and AMD to pay 15% of China’s revenue to us

Chip Giants Nvidia and AMD have agreed to pay the US government 15% of its semi -semi -conjunction sales in China, the BBC has said from a source close to the question.

The agreement is part of a transaction to provide licenses to export the world’s second largest economy.

“We are following the rules of the US government for our participation in the world markets. Although we have not delivered H20 in China for months, we hope that the rules of export control will allow America to compete in China and globally,” NVIDIA told the BBC.

AMD did not immediately reply to a request for a comment.

In a statement to the BBC, Nvidia also said, “America cannot repeat 5G and lose telecommunications leadership. The technical stack of America (artificial intelligence) can be the world standard if we compete.”

Under the agreement, NVIDIA will pay 15% of its sales of H20 chips in China to the US government, while AMD will give the same percentage of its MI308 revenue, which was first reported by the Financial Times.

Earlier Washington banned the sale of NVIDIA H20 chips for Beijing because of security fears, although the company has recently announced that this will to be turnedS

The H20 chip was designed specifically for the Chinese market after the US export administration was imposed by the Biden administration in 2023. Its sale was effectively banned by the Trump administration in April this year.

Nvidia CEO Jenson Huang spent months lobbying both sides to resume sales of chips in China. He was reported to meet with US President Donald Trump last week.

The resumption of sales of chips in China is coming as trade tensions between Beijing and Washington are relieved.

Beijing is a calm control over the export of rare earthly, while the United States has raised restrictions on chips designing chips in China.

In May, the two largest economies in the world agreed to a 90-day truce in their tariff war.

Since then, the best sales officers on both sides have met several times, although the Tariff Pause Extension Agreement has not yet been confirmed before the August 12th deadline.

As part of its tariff policy, Trump puts pressure on large companies to make more investment in the United States.

Last week, Apple said I would invest another $ 100 billion (£ 74.4 billion) in the country, adding to a previous bet to spend $ 500 billion in the United States over the next four years.

In June, memory manufacturer Micron Technology said planned investments in the US will amount to $ 200 billion. This includes the construction of a new production facility in Idaho.

NVIDIA itself has announced plans to build AI servers in the US worth up to $ 500 billion, promising to build the first AI Supercomputers, which are entirely American.