Chip Giants Nvidia and AMD have agreed to pay the U.S. government 15% of its semiconductor sales in China.
The agreement is part of an agreement to ensure the acquisition of export licenses to the world’s second largest economy.
“We follow the rules of the U.S. government participation in global markets. Although we have not shipped H20 to China for several months, we hope that export control rules will allow the U.S. to compete in China and globally,” NVIDIA told the BBC.
AMD did not immediately respond to a request for comment.
“The United States cannot repeat 5G and lose its telecommunications leadership. If we compete, the U.S. (Artificial Intelligence) technology stack will become the standard in the world,” NVIDIA also said in a statement to the BBC.
Under the agreement, NVIDIA will sell H20 chips in China to the U.S. government to pay 15% of its revenue, while AMD will provide the same percentage from its MI308 chip revenue, the Financial Times first reported.
Washington has previously banned the sale of NVIDIA’s H20 chips to Beijing for security concerns, although the company recently announced that it would be Being reversed.
After the Biden administration implemented U.S. export restrictions in 2023, it specially developed H20 chips for the Chinese market. The Trump administration effectively banned its sale in April this year.
NVIDIA CEO Jensen Huang spent months lobbying both sides to restore sales of Chinese chips. He reportedly met with U.S. President Donald Trump last week.
As trade tensions between Beijing and Washington eased, chip sales resumed to China.
Beijing has easily controlled rare earth exports, while the United States has lifted restrictions on chip design software companies operating in China.
In May, the world’s two largest economies agreed to a 90-day truce in the tariff war.
Since then, senior trade officials from both sides have met several times, although an agreement to extend the tariff has not been confirmed before the August 12 deadline.
As part of his tariff policy, Trump has put pressure on major companies to invest more in the United States.
last week, Apple says it will invest another $10 billion (£74.4 billion) in the country, adding to the promise of previously spending $50 billion in the U.S. in the next four years.
In June, Memory Chip Maker Micron Technology said its planned U.S. investment total would reach $200 billion. This includes the construction of a new manufacturing plant in Idaho.
NVIDIA itself announced plans to build AI servers in the United States, worth up to $50 billion, and promised to build AI supercomputers that are completely made in the United States.
