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2w ago

U.S. Grants Nvidia and AMD China Chip Licenses in 15% Revenue Deal

Critics warn the arrangement undermines security controls by effectively taxing exports of AI processors.

TAIPEI, TAIWAN - APRIL 16: The logo of NVIDIA, an American tech company which designs and supplies GPUs, APIs, and Artificial Intelligence (AI) software and hardware, in Taipei, Taiwan, on April 16, 2025. The United States President Donald Trump's administration has confirmed that tariffs on semiconductors and some other technology products will 'take place in the very near future'. With tariffs and export restrictions expected to be implemented by the American government, electronic products such as iPhone, smartphones, tablet, computer and other digital devices requiring advanced microchips, as well as such global supply chain are likely to be affected. (Photo by Daniel Ceng/Anadolu via Getty Images)
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AMD, a US-based firm, manufactures advanced AI computer chips series

Overview

  • The Commerce Department has begun issuing export licenses for Nvidia’s H20 and AMD’s MI308 chips after companies agreed to remit 15% of their China sales revenue to the U.S. government.
  • President Trump confirmed that the revenue share was negotiated following White House meetings and set as a condition for lifting the April ban on downgraded AI processors.
  • Lawmakers and national security experts argue the fee functions like an unconstitutional export tax that monetizes what were originally security-driven restrictions.
  • Legal analysts caution that the unprecedented deal departs from established export-control practice and could face constitutional and statutory challenges.
  • Bernstein and other market forecasts estimate the levy could generate billions for the Treasury while narrowing chipmakers’ profit margins and leaving fund allocation unresolved.