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Nvidia and AMD have agreed to give the US government 15 per cent of their revenues from chip sales in China, under an arrangement to obtain export licenses for the semiconductors, the Financial Times reported on Sunday (Aug 10).
The revenue share applies to Nvidia's H20 chips and AMD's MI308 chips, the report said, citing a US official, noting that the Trump administration had yet to determine how to use the money.
The chipmakers agreed to the arrangement as a condition for obtaining export licences for the Chinese market that were granted last week, FT reported.
Nvidia follows rules the US government sets for its participation in worldwide markets, an Nvidia spokesperson told Reuters in an emailed statement. "While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide."
AMD did not immediately respond to a request for comment.
The Commerce Department started issuing licenses to Nvidia to export its H20 chips to China last week, removing a significant hurdle to the artificial intelligence bellwether's access to a key market.
The US last month reversed an April ban on the sale of the H20 chip to China. The company had tailored the microprocessor specially to the Chinese market to comply with the Biden-era AI chip export controls.
“What’s next — letting Lockheed Martin sell F-35s to China for a 15 percent commission?” Liza Tobin, who previously served as China director at the National Security Council during the Trump and Biden administrations, told The Financial Times.
How about all Chinese visitors in all hotels in USA have 15% of their daily rates transfered to US Commerce Department, except Chinese visitors staying in Trump hotels, they get 1% reduced rates compared to European and Canadian visitors staying in Trump Hotels!
“What’s next — letting Lockheed Martin sell F-35s to China for a 15 percent commission?” Liza Tobin, who previously served as China director at the National Security Council during the Trump and Biden administrations, told The Financial Times
How about all Chinese visitors in all hotels in USA have 15% of their daily rates transfered to US Commerce Department, except Chinese visitors staying in Trump hotels, they get 1% reduced rates compared to European and Canadian visitors staying in Trump Hotels!
These mob-servants simply cannot seem to think long term, their brains must be adjusting by working with a no-brains mob boss that went bankrupt ("just following the options offered by the laws") multiple times:
Trump administration officials defend the idea as a smart way to generate revenue for the US government and suggest it will extend well beyond the chips sector.
“I think we could see it in other industries over time,” Treasury Secretary Scott Bessent said in an interview with Bloomberg Television on Wednesday. “I think right now this is unique, but now that we have the model and the beta tests, why not expand it?”
Bessent defended the deal and rejected any national-security concerns around the decision to sell Nvidia’s H20 chip to China — something that had been earlier barred for fear of giving China a boost in the artificial-intelligence race.
“There are no national security concerns here,” Bessent said. “We would not sell any of the advanced chips. So, the H20, I don’t know whether you’d say they’re four, five, six levels down the chips stack.”
We are speeding running the entire world decoupling from the US. Trump hates this globalism stuff, but his fixes are disastrous. The world will never trust this country again.
15% going where? To hire more masked ICE agents? Pay the bills for having Marines and nationalized State Guardsmen terrorizing cities?
Anger and snark aside, what is the point of this 15% in reality?
Following the finance markets all day and almost every day, the financial channel showed a money transfer out of China of 30 million to all members of the Biden family except Joe himself with no contract or explanation available. Honesty and politics are mutually exclusive most of the time. Few complained about students being allowed to destroy campuses and support organizations that are terrorists and don't believe in equal rights, especially for women. It's a choice of picking your poison. This applies to everything including tech. No one can isolate themselves from politics both good and bad. Tech should stay out of the fray as much as possible and this includes both parties. Tech has allowed everyone to be informed real time they so choose and this is the great gift the tech sector has given much of the world. I hope Dan deletes these post including this one.
If you want truth, follow the money and how it's used, both good and bad. I feel the tech sector is among the best for it has given us more tools to make a better life and improve almost everything than any other sector.
Hard to ignore when politics and politicians inject themselves into semiconductor industry decisions and finances. Plenty of germaine stuff in this forum about the previous administration and the CHIPs act and the same for whatever industrial policy is going into effect for the semiconductor industry today.
There’s a small problem with Trump’s export deal with Nvidia and AMD: The Constitution says it’s illegal.
"If, as Bessent argues, the White House chips deal passes muster because there are no national security concerns that necessitate export controls on these particular products, another issue remains: Article 1, Section 9, of the U.S. Constitution, otherwise known as “the export clause,” states plainly that “No Tax or Duty shall be laid on Articles exported from any State.”"
