Chip giant Nvidia and AMD have agreed to pay 15% of their semiconductor sales in China, the BBC has been told by a source close to the case.
The agreement is part of a deal to secure the export license for the world’s second largest economy.
Nvidia told the BBC, “We follow the rules set by the US government for our participation in markets around the world. While we have not sent H20 to China for months, we hope that the export control rules allow the US to compete with China and the world.”
AMD did not immediately respond to the remarks request.
In a statement to the BBC, Nvidia also said: “America cannot repeat 5G and lose telecom leadership. America may not. [artificial intelligence] If we run, the tech stack can be the standard of the world. ,
Under the agreement, NVIDIA will pay 15% of its revenue from the sale of H20 chip in China, while the AMD will give the same percentage from its Mi308 chip revenue, which was first reported by the Financial Times.
Washington has previously banned the sale of NVidia’s H20 chips for Beijing over security concerns, although the firm recently announced that it would be reversed.
The H20 chip was specially developed for the Chinese market after the US export ban by the Biden administration in 2023. Its sales were effectively banned by the Trump administration in April this year.
Nvidia chief executive Jensen Huang has spent months to advocate both sides to resume the sale of chips in China. He allegedly met US President Donald Trump last week.
The sale of chip has become easier for China to resume the sale of chip as trade tension between Beijing and Washington.
Beijing has rested in control of rare earth exports, while the US has lifted the ban on chip design software firms working in China.
In May, the world’s two largest economies agreed to the 90-day truste in their tariff war.
Since then, top trade authorities from both sides have met on several occasions, although an agreement to expand the tariff stagnation has not yet been confirmed before the August 12 deadline.
As part of his tariff policy, Trump has pressured major companies to invest more in the US.
Last week, Apple said it would invest another $ 100BN (£ 74.4bn) in the country, adding the previous pledge to spend $ 500BN in the US over the next four years.
In June, memory chip maker Micron Technology said its employed American investment would be $ 200BN. This includes the construction of a new manufacturing facility in Idaho.
NVIDIA itself has announced a plan to create an AI server in the US, which promises to create an AI supercomputer before the price of up to $ 500BN which are fully American.
