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Chipmakers to give up China earnings
Bristol Post
|August 12, 2025
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.
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.
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 AI 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.
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