Chip Giants Nvidia and AMD to pay 15% of Chinese income in the United States

Chip Giants Nvidia and AMD agreed to pay the US government 15% of their semiconductor sales in China, the BBC was informed by a source close to the issue.

The agreement is part of an agreement to obtain export licenses to the second largest world economy.

“We follow the rules that the US government has for our participation in global markets. Although we have not shipped H20 in China for months, we hope that the export control rules will allow America to compete in China and in the world,” Nvidia told the BBC.

AMD did not immediately respond to a request for comments.

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

Washington previously prohibited the sale of NVIDIA H20 fleas in Beijing for security problems, although the company recently announced that this would be reversed.

The H20 chip was developed specifically for the Chinese market after the American export restrictions were imposed by the Biden administration in 2023. Its sale was effectively prohibited by the Trump administration in April of this year.

Nvidia’s chief executive officer, Jensen Huang, spent months lobbying the two parties for a return to flea sales in China. He would have met US President Donald Trump last week.

The resumption of flea sales at China occurs while trade tensions between Beijing and Washington have softened.

Beijing has softened rare earth export controls, while the United States has lifted restrictions on flea design software companies operating in China.

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

Since then, the senior trade officials on both sides have met several times, although an agreement to extend the price break has not yet been confirmed before a deadline of August 12.