Chip giants Nvidia and AMD have agreed to pay the US government 15% of semiconductor sales in China, citing a source close to the matter, BBC reports, writes UNN.
Details
This is part of an agreement to obtain export licenses to the world's second largest economy.
"We adhere to the rules set by the US government for our presence in global markets. While we have not supplied H20 to China for several months, we hope that export control rules will allow America to compete in China and around the world," Nvidia told the BBC.
AMD did not immediately respond to a request for comment.
In a statement to the BBC, Nvidia also said: "America cannot repeat 5G and lose leadership in telecommunications. America's [artificial intelligence] technology stack can become a global standard if we compete."
Under the agreement, Nvidia will pay 15% of its revenue from H20 chip sales in China to the US government, while AMD will provide the same percentage of revenue from MI308 chip sales, as first reported by the Financial Times.
Addition
Washington previously banned the sale of Nvidia H20 chips to Beijing due to security concerns, although the company recently announced that this would be lifted. These powerful chips are used in artificial intelligence (AI) applications.
The H20 chip was developed specifically for the Chinese market after the Biden administration imposed US export restrictions in 2023. Its sale was effectively banned by the Trump administration in April of this year.
Earlier, the Financial Times reported that China had urged the US to ease export controls on semiconductors as part of any potential tariff agreement.