Nvidia, AMD to transfer fifty per cent of semiconductor sales in China to US
(MENAFN) Reports indicate that major semiconductor companies Nvidia and AMD have consented to transfer 15% of their revenue generated from chip sales in China to the US government. This arrangement forms part of a broader deal aimed at obtaining export licenses for business operations within China, the world's second-largest economy.
A representative from Nvidia emphasized their adherence to US regulations, stating, "We follow rules the US government sets for our participation in worldwide markets. While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide." AMD has not yet issued a public comment on the matter.
Further expressing Nvidia’s position, the company remarked, "America cannot repeat 5G and lose telecommunication leadership. America's [artificial intelligence] tech stack can be the world's standard if we race."
According to available information, Nvidia will remit 15% of its earnings from H20 chip sales in China to US authorities. Similarly, AMD is expected to hand over the same portion from revenues linked to its MI308 chip sales. Industry analysis suggests this kind of financial arrangement is highly unusual.
Charlie Dai, vice president and lead analyst at a global research firm, described the deal as "unprecedented," noting that it highlights the steep costs associated with maintaining market access amid rising technological trade disputes. He further explained, "The arrangement underscores the high cost of market access amid escalating tech trade tensions, creating substantial financial pressure and strategic uncertainty for tech vendors."
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