FX.co ★ Nvidia, AMD to Pay U.S. for China Chip Access

Nvidia and AMD have reportedly reached an agreement to allocate 15% of their revenues from specific chip sales in China to the U.S. government in exchange for export licenses for Nvidia’s H20 and AMD’s MI308 chips. This arrangement, reported by the Financial Times, is unprecedented and highlights the strategic use of trade exceptions by the White House amidst persistent tariff pressures. The urgency of such deals has been compounded by President Trump’s recent declaration to impose a 100% tariff on imported semiconductors unless production is shifted back to the United States. Nvidia's CEO, Jensen Huang, held discussions with President Trump last week, according to the Financial Times. In a statement, Nvidia emphasized its compliance with U.S. government regulations as it navigates global markets. This development illustrates Washington's evolving strategy on technology exports, balancing national security with economic objectives.