Chip manufacturers Nvidia and AMD have agreed to allocate 15% of their earnings in China to the United States.

Nvidia and AMD have reportedly agreed to pay 15% of their semiconductor sales in China to the US government as part of a deal to secure export licenses to the world’s second-largest economy. The agreement comes after Washington had previously banned the sale of Nvidia’s H20 chips to Beijing over security concerns. The H20 chip was developed specifically for the Chinese market after export restrictions were imposed by the Biden administration in 2023 and its sale was effectively banned by the Trump administration in April this year. Nvidia’s CEO Jensen Huang has spent months lobbying both sides for a resumption of sales of the chips in China and reportedly met with US President Donald Trump last week. The resumption of chip sales to China comes as trade tensions between Beijing and Washington have been easing, with Beijing relaxing controls on rare earth exports and the US lifting restrictions on chip design software firms operating in China, as the two countries agreed to a 90-day truce in their tariffs war in May.

Source: https://www.bbc.com/news/articles/cvgvvnx8y19o?at_medium=RSS&at_campaign=rss