Overview

• Nvidia and AMD will pay the U.S. government 15% of their China chip sale revenues from H20 and MI308 processors as a condition for export licenses.
• The Commerce Department began issuing export permits for Nvidia’s H20 last week following the reversal of an April ban.
• Export control experts say no previous U.S. firm has agreed to a revenue-sharing term in licensing, highlighting the novelty of the requirement.
• The administration has not decided how it will use the funds generated by the 15% revenue share.
• The arrangement illustrates the administration’s evolving use of trade policy to align national security and economic competitiveness.