Nvidia and AMD Strike Deal: 15% of China Earnings to US Government

Mon Oct 20 2025 13:16:56 GMT+0300 (Eastern European Summer Time)

Chip makers Nvidia and AMD will remit 15% of their semiconductor sales from China to the US in a strategic agreement for export licenses.

The agreement comes amid evolving trade dynamics between the US and China, reflecting a push for cooperation while addressing security concerns.

Nvidia and AMD, two of the leading semiconductor manufacturers, have reached an agreement to pay 15% of their revenues from chip sales in China to the United States government. This development was confirmed to the BBC by a well-informed source. The decision is part of a broader effort to secure necessary export licenses to operate in China, the world's second-largest economy.

Nvidia, in a statement to the BBC, emphasized their commitment to complying with US regulations to maintain their presence in global markets. Although Nvidia has not shipped its H20 chips to China in several months, the company expressed hope that revised export control regulations would enable better competitiveness in China and across the globe. AMD has yet to provide feedback on the agreement.

Specifics of the deal indicate that Nvidia will allocate 15% of its revenue from H20 chip sales in China to the US government, while AMD will contribute the same percentage from its MI308 chip sales. Earlier reports indicated that this arrangement was initially announced by the Financial Times.

The move follows previous restrictions imposed on Nvidia’s ability to sell its H20 chips in China due to national security fears, which were enacted by the Trump administration. However, there have been recent indications that these restrictions may be lifted. The H20 chip, designed primarily for Chinese consumers, had been prohibited from entering the market after the Biden administration's sanctions in 2023, while earlier regulations had similarly constrained sales under the previous administration.

Nvidia's CEO Jensen Huang has been actively navigating this complex landscape, reportedly meeting with US President Donald Trump to advocate for the resumption of chip sales to China. This renewed opportunity comes alongside a general easing of trade tensions between the US and China.

In recent months, Beijing relaxed controls on rare earth exports, and the US also lifted certain restrictions on chip design software firms functioning in the Chinese market. In a related context, the two leading economies agreed to a temporary truce regarding tariffs in May, although it remains uncertain whether this pause will extend beyond the upcoming deadline on August 12, despite ongoing discussions between leading trade officials from both countries.