Key Facts
• August 10: U.S. officials confirm NVIDIA and AMD’s agreement to pay 15% revenue.
• Applies to advanced semiconductors like NVIDIA’s H20 and AMD’s MI308.
• April 2025: Trump administration halted H20 sales to China.
• August 8: U.S. Commerce Department began granting export licenses for H20.
• NVIDIA has not shipped H20 to China for several months.
• Financial Times reports agreement tied to export license conditions.
• U.S. officials state sales do not compromise national security.
• Think tank criticizes policy as inconsistent with security concerns.
• Revenue use by U.S. Treasury remains undecided.
• Former Biden administration advisor criticizes policy as prioritizing revenue over security.
Summary
NVIDIA and AMD have agreed to pay 15% of their revenue from advanced semiconductor sales to China, including products like NVIDIA’s H20 and AMD’s MI308, to the U.S. government. This agreement, confirmed by U.S. officials on August 10, is tied to export license conditions. The Trump administration had previously halted H20 sales to China in April 2025, but the U.S. Commerce Department recently resumed granting export licenses. Critics, including think tanks and former Biden administration advisors, have questioned the policy’s consistency with national security concerns, as well as its focus on generating revenue. The U.S. Treasury has yet to decide how the collected funds will be used.
