{"id":51781,"date":"2025-08-10T17:08:21","date_gmt":"2025-08-10T21:08:21","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-amd-to-cede-15-of-china-chip-revenue-to-us-government-for-export-licenses\/51781\/"},"modified":"2025-08-10T17:08:21","modified_gmt":"2025-08-10T21:08:21","slug":"nvidia-amd-to-cede-15-of-china-chip-revenue-to-us-government-for-export-licenses","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-amd-to-cede-15-of-china-chip-revenue-to-us-government-for-export-licenses\/51781\/","title":{"rendered":"Nvidia, AMD to Cede 15% of China Chip Revenue to US Government for Export Licenses"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> and <strong>Advanced Micro Devices (<a href=\"\/stock\/AMD\">AMD<\/a>)<\/strong> have agreed to remit <strong>15%<\/strong> of their revenues from specific <strong>AI chip sales in China<\/strong> directly to the <strong>US government<\/strong>.<\/li>\n<li>This unprecedented arrangement is a condition set by the <strong><a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> administration<\/strong> to grant <strong>export licenses<\/strong>, enabling the tech giants to resume shipments of their <strong>H20<\/strong> (Nvidia) and <strong>MI308<\/strong> (AMD) chips to the crucial Chinese market.<\/li>\n<li>The decision marks a <em>significant policy reversal<\/em> by the US, which had previously tightened restrictions even on these less-advanced chips designed to comply with earlier export controls, and is expected to add <em>billions to Nvidia&#39;s revenue<\/em>.<\/li>\n<li>The agreement follows recent high-level discussions, including a meeting between <strong>Nvidia CEO Jensen Huang<\/strong> and <strong>President Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a><\/strong>, signaling a <em>thawing in the broader US-China trade relationship<\/em>.<\/li>\n<\/ul>\n<p>US semiconductor giants <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> and <strong>Advanced Micro Devices (<a href=\"\/stock\/AMD\">AMD<\/a>)<\/strong> have reportedly reached an agreement with the <strong>Trump administration<\/strong> to pay <strong>15%<\/strong> of their revenues generated from certain chip sales in China to the US government. This concession is a prerequisite for obtaining the necessary export licenses to sell their specialized AI chips in the lucrative Chinese market.<\/p>\n<p>Under the terms of the agreement, <strong>Nvidia<\/strong> will share <strong>15%<\/strong> of revenues from its <strong>H20 chip sales<\/strong> in China, while <strong>AMD<\/strong> will apply the same percentage to its <strong>MI308 chip revenues<\/strong>. These specific chips were developed by the companies to meet earlier US export control regulations, which aimed to limit China&#39;s access to advanced artificial intelligence technology. However, the Trump administration had further tightened these restrictions in April, effectively blocking sales of even these compliant chips without a special permit.<\/p>\n<p>The move represents a <em>dramatic shift<\/em> in Washington&#39;s stance on semiconductor exports to Beijing. For <strong>Nvidia<\/strong>, the resumption of sales for its <strong>H20 artificial intelligence accelerator<\/strong> could inject <em>billions of dollars<\/em> into its revenue streams, recovering orders that had been written off due to the prior government restrictions. <strong>AMD<\/strong> has also received assurances from the <strong>US Commerce Department<\/strong> regarding its <strong>MI308 chips<\/strong>, with plans to restart shipments once licenses are approved.<\/p>\n<p>This development comes amidst a <em>broader de-escalation of trade tensions<\/em> between the United States and China. <strong>Nvidia CEO Jensen Huang<\/strong> recently met with <strong>President Trump<\/strong> at the White House, advocating for continued access to the Chinese market to avoid jeopardizing US leadership in AI. The agreement is seen by some as part of an <em>opaque trade truce<\/em> designed to facilitate the approval of crucial technology exports between the two economic superpowers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nvidia (NVDA) and Advanced Micro Devices (AMD) have agreed to remit 15% of their revenues from specific AI 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