Business Desk 
Aug 11, 2025
In what seems to be a move aimed at discouraging chip exports to China, Nvidia and AMD have agreed to pay the US government 15% of their advanced computer chip sales, such as Nvidia’s H20, to China
The chips whose sales to China are being penalised are designed to be used for artificial intelligence (AI) applications.
Citing an informed US official, Reuters brought the developement to light, adding that the Trump administration halted sales of H20 chips to China In April, but Nvidia announced last month that the U.S. would permit the company to resume sales.
It was also reported confirmed that the Commerce Department has begun issuing licences for the sale of H20 chips to China.
When asked about the revenue agreement, an Nvidia spokesperson stated: “We follow the rules the U.S. government sets for our participation in worldwide markets.” They added, “While we haven’t shipped H20 to China for months, we hope export control rules will enable America to compete in China and globally.”
It's worth noting that China is a major market for both chip makers, with Nvidia generating $17 billion in revenue from China in the fiscal year ending January 26, representing 13% of total sales, and AMD reporting $6.2bn in revenue from China for 2024, making up for 24% of its total revenue.
The Financial Times, being the first to have reported the news, underlined that this revenue-sharing arrangement was a condition for obtaining export licences for their semiconductors.
