Nvidia, AMD: China Chip Tax

Nvidia and AMD have reportedly agreed to remit 15% of their revenue from Chinese chip sales to the US government. This arrangement was a condition set by the Trump administration for granting export licenses.

The agreement impacts Nvidia's H20 chips and AMD's MI308 processors, both tailored for the Chinese market. The US government is yet to determine how these funds will be utilised. Bernstein analysts estimate that Nvidia's H20 sales in China could have generated approximately $23 billion in revenue for 2025. This arrangement marks an unprecedented move in US export control policy.

This decision follows previous restrictions and reversals regarding AI chip exports to China. Nvidia had designed the H20 chip to comply with earlier trade restrictions. The resumption of sales comes after assurances from Washington that export licenses would be approved.