Nvidia, AMD agree to pay US 15% of China chip sale revenue

[WASHINGTON] Nvidia and Advanced Micro Devices (AMD) agreed to pay 15 per cent of their revenues from chip sales to China to the US government as part of a deal with the Trump administration to secure export licenses, according to a source familiar with the matter.

Nvidia plans to share 15 per cent of the revenue from sales of its H20 chip in China and AMD will deliver the same share from MI308 revenues, added the source, who asked for anonymity to discuss internal deliberations. The Financial Times earlier reported the development.

It followed a separate report from the Financial Times that the US Commerce Department started issuing H20 licenses on Friday, two days after Nvidia chief executive officer Jensen Huang met US President Donald Trump.

The Trump administration had frozen the sale of some advanced chips to China earlier this year as trade tensions spiked between the world’s two largest economies.

An Nvidia spokesperson said that the company follows US export rules, adding that while it has not shipped H20 chips to China for months, it hopes the rules will allow US companies to compete in China. AMD did not immediately respond to a request for comment.

Separately, Intel chief executive officer Tan Lip-Bu is expected to visit the White House on Monday after Trump called for his dismissal last week over his ties to Chinese businesses, The Wall Street Journal reported Sunday. BLOOMBERG