Nvidia, AMD may pay revenue from chip sales in China to the US government

Nvidia

Nvidia and Advanced Micro Devices (AMD) have reportedly struck an unusual deal with the US government, agreeing to hand over 15% of revenues from specific chips sold in China in exchange for export licenses. According to a report by The Financial Times, the agreement covers Nvidia’s H20 and AMD’s MI308 chips, which would otherwise be restricted under US export controls targeting China’s tech sector.

The arrangement reflects a rare exception to Washington’s increasingly tough stance on semiconductor exports, made amid heightened trade tensions. President Donald Trump’s administration has maintained sweeping tariffs on Chinese imports while using export rules as leverage in negotiations. The reported deal signals a willingness to use selective exemptions as a bargaining chip — quite literally — in U.S.-China economic relations.

Trump’ recently said that he would impose a 100% tariff on imported semiconductors unless companies manufacture in the U.S. The reported agreement suggests that the administration is balancing its push for domestic production with the need to preserve revenue opportunities for American chipmakers in lucrative overseas markets.

Nvidia CEO Jensen Huang is said to have met with Trump last week, likely discussing the terms. While neither company confirmed the specifics, Nvidia told the Financial Times: “We follow rules the US government sets for our participation in worldwide markets.”

If finalised, the deal would give the White House a direct cut of chip sales in China — a first-of-its-kind arrangement — while allowing Nvidia and AMD to maintain access to one of their most important markets despite geopolitical headwinds