Nvidia, AMD to share China sales revenue with U.S.

AWANI

Chip giants Nvidia and AMD have agreed to pay the U.S. government 15% of revenue from their sales to China, as part of a deal to secure export licences for semiconductors.

Transcript

00:00In other news, chip giants NVIDIA and Advanced Micro Devices, or AMD,

00:05have agreed to pay the US government 15% of revenue from their sales to China.

00:10According to the Financial Times, this move is part of an arrangement

00:13with the Trump administration to secure export licenses for semiconductors.

00:20US officials said NVIDIA will share 15% of sales from its H2O chips in China,

00:26while AMD will do the same for its MI308 chips.

00:30The Trump administration has yet to decide how the funds will be used.

00:35Sales of H2O chips to China were halted in April,

00:38but the US recently allowed NVIDIA to resume deliveries,

00:42with the Commerce Department now issuing licenses.

00:45AMD's MI308 chips are also covered under the agreement.

00:49When asked about the revenue-sharing deal,

00:51NVIDIA said they follow rules the US government sets for their participation in worldwide markets.

00:57Officials stress that the sales would not compromise national security,

01:01though details on the agreement's implementation remain unclear.

01:05China is a key market for both companies.

01:07NVIDIA earned US$17 billion from China in its last fiscal year,

01:1213% of total revenue,

01:14while AMD made US$6.2 billion in 2024,

01:18accounting for 24% of its sales.

01:21NVIDIA ogie

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01:35Korea

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01:43Korea

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01:45K.

01:47100%

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