According to the latest media reports, NVIDIA and AMD have agreed to pay 15% of their chip sales revenue in China to the U.S. government as a condition for the Trump administration's approval of semiconductor export licenses. This unprecedented arrangement marks a significant shift in U.S. export control policy.
Insiders revealed that the two chip manufacturers obtained licenses to export to the Chinese market last week, but must meet this financial condition. U.S. government officials stated that NVIDIA must share 15% of its sales revenue from the H20 chip in China, while AMD must pay a similar proportion of revenue from the MI308 chip.
According to estimates by Bernstein analysts, based on NVIDIA's previous performance guidance, the company is expected to sell about 1.5 million H20 chips in China by 2025, generating approximately $23 billion in revenue. This means NVIDIA may have to pay more than $3 billion to the U.S. government.
Experts in export controls noted that no U.S. company has ever agreed to pay a share of revenue to obtain an export license. However, this arrangement aligns with the Trump administration's consistent approach of urging companies to take domestic investment measures to avoid tariffs and bring jobs and income to the U.S.
AMD did not respond to requests for comment. NVIDIA did not deny reaching this arrangement, stating, &#34;We follow the rules set by the U.S. government for our participation in the global market.&#34;
On social media, analysts pointed out the significant implications of this arrangement, stating, &#34;The trade war has just entered a new era.&#34;
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Most people do not realize the true importance of this announcement. It involves 15% revenue from China, not profit, applicable to both NVIDIA and AMD. This also means that the Trump administration is now negotiating 'trade agreements' on a company-by-company basis. The trade war has just entered a new era.
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<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/42e9fc9f-30c4-4c25-b971-8c3546625e1f.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/42e9fc9f-30c4-4c25-b971-8c3546625e1f.png"/>
The U.S. Department of Commerce began issuing export licenses for the H20 chip last Friday, just two days after NVIDIA CEO Jensen Huang met with President Trump. Insiders revealed that the U.S. government has also started issuing licenses for AMD's chips to China.
According to official news from the Ministry of Commerce of China, the U.S. side proactively indicated that it would approve the sale of NVIDIA's H20 chips to China.
The Ministry of Commerce stated that China reviews export applications for controlled items that meet the conditions in accordance with the law, and the U.S. side correspondingly lifted the restrictions discussed in the talks in early July. Cooperation and win-win outcomes between China and the U.S. is the right path; suppression and containment have no way out. In May of this year, the U.S. issued relevant export control guidelines against Huawei's Ascend chips, imposing stricter controls on Chinese chip products under unfounded accusations, interfering with fair market competition through administrative power, and severely harming the legitimate rights and interests of Chinese enterprises. China has clearly stated its position and firmly opposes this. We look forward to the U.S. side and the Chinese side moving towards each other, correcting mistakes through equal consultations, and creating a good environment for mutually beneficial cooperation between enterprises from both sides, jointly maintaining the stability of the global semiconductor supply chain
According to a previous report by CCTV News, Trump has announced that he will impose a 100% tariff on semiconductor and chip imports, but will provide exemptions for companies that build factories in the United States. He stated:
<blockquote>
We will impose very high tariffs on chip and semiconductor products, but companies like Apple, if you build factories in the United States, or have clearly committed to building factories in the United States, will not be taxed.
In other words, we will impose about a 100% tariff on chip and semiconductor products. But as long as you build factories in the United States, you will not be taxed. Even if you have not yet started large-scale production, as long as you are in the construction phase, you will not be taxed.
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NVIDIA and AMD agreed to pay 15% of their chip sales revenue from China to the U.S. government in exchange for the Trump administration's approval of semiconductor export licenses. This arrangement marks a significant shift in U.S. export control policy, with NVIDIA expected to pay over $3 billion. Analysts point out that this move indicates the Trump administration is negotiating trade agreements on a company-by-company basis, ushering in a new era of trade war. The U.S. Department of Commerce has begun issuing H20 chip export licenses, indicating that cooperation between China and the U.S. is resuming

- NVIDIA and AMD have agreed to pay 15% of their sales revenue from China to the U.S. government as a condition for semiconductor export licenses.  
- This unprecedented arrangement signifies a major shift in U.S. export control policy, with NVIDIA potentially paying over $3 billion based on projected sales of H20 chips.  
- Analysts suggest this marks a new era in the trade war, as the U.S. government negotiates terms with individual companies, emphasizing domestic investment to avoid tariffs.

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Reports say: NVIDIA and AMD pay 15% of their AI chip revenue from China in exchange for Trump's "green light."