Mon, 11 Aug 2025

Mon, 11 Aug 2025 Chip giants Nvidia and AMD to pay 15% of China revenue to US

One global trade expert told the BBC that the agreement is "unprecedented".

* Nvidia and AMD have agreed to pay 15% of their semiconductor sales in China to the US government.
* The agreement is part of a deal to secure export licenses to China, the world's second-largest economy.
* Nvidia will pay 15% of its revenues from H20 chip sales in China, while AMD will give the same percentage from its MI308 chip revenues.
* Analysts say this arrangement is "unprecedented" and creates financial pressure and strategic uncertainty for tech vendors.
* The agreement comes as trade tensions between Beijing and Washington have been easing, with both sides relaxing controls on rare earth exports and chip design software firms operating in China.
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