Nvidia, AMD to pay 15% of China chip sale revenue to US, official says

Key Takeaway

The U.S. government will require Nvidia and AMD to pay a 15% fee on revenues from certain AI chip sales to China as a condition for obtaining export licenses, an unprecedented arrangement highlighted by multiple reports and on-air briefings on August 11, 2025.[1][3]

What’s New

• The deal applies to specific AI accelerators: Nvidia’s H20 and AMD’s MI308, which are tailored for the Chinese market under existing export controls.[1][3]
• Under the arrangement, the companies would remit 15% of revenue from these China sales to the U.S. Treasury as part of securing export licenses.[3]
• Reports describe the mechanism as unprecedented in U.S. export control practice, distinct from traditional export restrictions or tariffs.[1][3]

Company Responses

Nvidia stated it follows U.S. government rules for global markets and noted it has not shipped the H20 to China “for months,” while expressing hope that export rules will allow U.S. firms to compete in China and worldwide.[1]

Why It Matters

• Revenue impact: The 15% remit could amount to billions of dollars depending on future China demand for compliant AI accelerators.[1][3]
• Policy precedent: Conditioning licenses on a revenue-based fee rather than unit caps or technical thresholds marks a notable shift in export control tools.[1][3]
• Strategic tech competition: The move affects access to advanced AI hardware in the world’s second-largest economy, influencing AI infrastructure buildouts and supply chains.[1][3]

How the Fee Works

• The 15% applies to revenues from sales of the designated AI chips in China.[3]
• Payment would be made into the U.S. Treasury as a condition tied to license approvals.[3]
• Analysts and legal experts have flagged potential questions if the arrangement were construed as an “export tax,” though the reports characterize it as a license condition rather than a tax statute.[3]

Chips Affected

• Nvidia H20: A constrained AI accelerator variant designed to comply with U.S. export thresholds for China.[1][3]
• AMD MI308: AMD’s China-targeted AI accelerator under the same fee arrangement.[1][3]

Market and Geopolitical Context

• Commentary emphasizes potential market ripple effects for global semiconductor supply chains and European chip exposure, given U.S.–China technology tensions.[2]
• Chinese state-linked commentary has recently raised national security concerns around Nvidia’s H20, underscoring rising scrutiny over AI hardware capabilities.[3]

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