
Nvidia, AMD Shares Slip In Premarket Trade Post US Government Deal For 15% Share Of China Chip Sales Revenue
US officials have confirmed that semiconductor giants Nvidia and AMD have agreed to remit 15 per cent of their revenue from sales of advanced chips to China, including Nvidia’s H20 model used in artificial intelligence applications, to the US Treasury.
The arrangement follows months of restrictions imposed by the Trump administration, reported Reuters. In April, the White House halted sales of H20 chips to China over national security concerns. However, Nvidia said last month that it had been informed of the government’s decision to permit renewed shipments, with deliveries expected to resume soon.
The US Commerce Department has already begun issuing licences for H20 exports, another official said on Friday. According to the Financial Times, the 15 per cent revenue-sharing condition applies to licences for multiple semiconductor products, including AMD’s MI308 chips.