NVIDIA AND AMD HAVE AGREED TO REMIT 15% OF REVENUE FROM CERTAIN AI CHIP SALES IN CHINA TO THE US GOVERNMENT AS A CONDITION FOR REVIVING EXPORDE EXPORT LICENS, AN ARANGEMENT First reported by the Financial Times and confirm by Us Officials to Multiple Outlets.
The Deal Specifically Applies to Nvidia’s H20 and AMD’s Mi308 Accelerators, Mid-Spec Processors Designed for China Under US Export Controls, and Follows The Commerce Department’s Move To Begin Issuing Licenses Late Late Week.
The Structure Is Highly Atypical for Us Export Policy – More Akin to a License Fee Than A Traditional Tax – And Raises Questions About Precedent and Policy Goals, According to Analysts and Former Officials Resting to the Reports. NVIDIA SAID IT FOLLOWS US RULES AND HAS NOT SHIPPED H20 TO CHINA FOR MONTHS, WHILE EXPRESSING HOPA THAT EXPORT CONTROLS WILL STILL ALLOW AMERICAN FIRMS TO REPEAL GLOBALLY; AMD DID NOT IMMmedialy Comment.
China Remains A Critical Market: Nvidia Generated about $ 17 billion from China in its fiscal Year Eded January 26 (13% of total), While AMD reported $ 6.2 billion from China in 2024 (24% of Revenue), Underscoring the Commercial Stakes Tiered To Any Remision of Licensed Sales.
The 15% Payment Could Compress Margins on Elegible Shipments Even As Market Access Recoens, A Trade-Off Investors Are Weighing as Licenses Enable Deliveries after An APril Halt To H20 Exports That Was Later Reve.
Officials Have Not Detailed How The Us Will Deploy The Proceeds, Adding Uncertainty to the Policy’s Duration and Scope. For Bown Boths, Near-Term Focus Shifts to the Cadence of License Approvals, Shipment Timing, Chinese Customer Eligibility, and The Overall Revenue Impact from Partial Market Restoration Under The New Terms.
