In a rare policy move blending trade controls with commercial incentives, U.S. semiconductor giants Nvidia and Advanced Micro Devices (AMD) have reportedly agreed to share a portion of revenues from certain chip sales in China in exchange for export approvals.
According to reports, the arrangement would see both companies allocate 15% of sales revenue from specified products to the U.S. government. In return, they will secure export licenses for high-performance chips — including Nvidia’s H20and AMD’s MI308 — enabling continued access to the Chinese market despite tightening restrictions.
The deal emerges against the backdrop of President Donald Trump’s continued hardline trade stance, marked by tariffs designed to bolster domestic manufacturing. While the administration has pushed for onshore chip production, this agreement highlights its willingness to make selective exemptions where strategic or economic advantages exist.
Sources suggest Nvidia CEO Jensen Huang met with President Trump last week to discuss the arrangement. Nvidia has since stated that it complies fully with U.S. regulations governing international markets.
Just days prior, Trump reiterated his position that imports of semiconductors and chips could face 100% tariffs unless manufacturers established production within the United States — a policy direction that could reshape global supply chains for years to come.
For Nvidia and AMD, the agreement offers a pragmatic pathway to maintain a foothold in China’s lucrative tech sector while aligning with Washington’s evolving export control framework. For the U.S. government, it marks a precedent-setting blend of economic policy and industry partnership — one that may serve as a template for other regulated sectors navigating geopolitical tensions.
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IMAGE: Reuters
