Nvidia to Pay US 15% of China Chip Sale Revenue
Nvidia Corp. and Advanced Micro Devices Inc. agreed to pay 15% of their revenues from chip sales to China to the US government as part of a deal...
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Nvidia and AMD have reached a significant agreement with the US government regarding their semiconductor sales to China. Under this arrangement negotiated during the Trump administration, both companies will pay 15% of their revenues from Chinese chip sales directly to the US government.
This deal represents a broader strategy to regulate technology exports while managing the technological competition between the United States and China. The revenue-sharing mechanism allows the companies to maintain some market access in China while demonstrating compliance with US export control regulations.
This development reflects ongoing tensions in the semiconductor industry, where the US has implemented strict controls to limit China's access to advanced technologies due to national security concerns. The agreement highlights the complex regulatory environment that major semiconductor companies must navigate in international markets, particularly when dealing with geopolitically sensitive technologies.