Chipmakers to give up China earnings

US chip giants Nvidia and AMD have struck a deal to surrender 15% of their Chinese earnings to Washington in return for approval to restart sales of high-powered AI processors to the country, in what industry experts are describing as an “unprecedented” arrangement.

- BY SASKIA KOOPMAN

The agreement, initially disclosed by the Financial Times, covers Nvidia's H20 and AMD's MI308 chips - semiconductors created exclusively for the Chinese market following the Biden administration’s 2023 export restrictions that prohibited sales of more sophisticated Al technology to Beijing.

The Trump administration had outlawed the H20 in April but changed direction in June after pressure from Nvidia chief Jensen Huang, who held talks with US President Donald Trump last week.

Within 48 hours, the US Commerce Department started issuing export permits.