While US President Donald Trump continues to unleash a wave of Trump Tariffs on multiple countries, his administration has also turned its focus to American tech giants doing big business in China, especially chipmakers. The latest target semiconductor leaders are NVIDIA and AMD.
According to a Bloomberg report, both companies have agreed to hand over 15% of the revenue they earn from China to the US government. This move is part of a deal to secure export licenses for selling their chips to the world’s second-largest economy.
A Condition for Selling in China
NVIDIA confirmed the agreement, saying, “We follow the rules set by the US government for our participation in global markets.” AMD has not yet issued a formal comment.
Under the terms:
NVIDIA will pay 15% of revenue from sales of its H20 chips in China.
AMD will pay the same share from sales of its MI308 chips in China.
These H20 chips, used heavily in AI applications, had previously been banned from sale to China over security concerns. That ban has now been eased under strict conditions.
Behind the Scenes Lobbying
NVIDIA’s H20 chip was specifically designed for the Chinese market. The company’s CEO, Jensen Huang, reportedly lobbied for months to resume sales, even meeting President Trump last week. The green light comes as US–China trade tensions show signs of easing.
Trade Relations
The US has recently lifted restrictions on chip design software companies operating in China, while China has relaxed export controls on rare earth metals, key materials for tech manufacturing. According to earlier reports, Beijing had even proposed easing semiconductor export restrictions as part of a possible tariff deal with Washington.
Illegal AI Chip Shipments Uncovered
Despite the previous ban, the illegal export of AI chips to China was reportedly rampant. Just last week, US authorities arrested two Chinese nationals in California, 28-year-old Chuan Geng and 28-year-old Shiwei Yang, accused of smuggling millions of dollars’ worth of sensitive AI chips, including those made by NVIDIA, from October 2022 to July 2025 without the required license.
The US Justice Department (DOJ) confirmed the arrests, calling the exports a serious breach of national security protocols.
