Washington: US Semiconductor Leaders Nvidia and Advanced Micro devices have allegedly agreed to the United States government to pay 15% of their revenue from the sale of Artificial Intelligence Chips to China.
Financial Times, Bloomberg and New York Times reported that NVDia CEO Jensen Huang met US President Donald Trump to finalize the unusual revenue-sharing system.
Nvidia, the world’s top semiconductor manufacturer, recently became the first company to reach the $ 4 trillion market price as AI demand surge.
The California -based firm has faced a ban on export of advanced chips into China due to US national security concerns.
Last month, Nvidia confirmed that Washington would allow the sale of its low powerful “H20” chips, which is specifically designed for the Chinese market.
Prior to the White House meeting, the Trump administration did not give an NVidia license to sell these chips in China.
According to media reports, the Commerce Department on Friday started issuing export licenses to China for the sale of chip.
Advanced micro devices will also pay 15% revenue from the Chinese sale of their Mi308 chips, which was previously stopped from exports.
The New York Times estimates that the deal may exceed $ 2 billion for the US government.
This development follows recent American tariffs, including 100% duty on semiconductor imports, exempting firms in heavy -investing in American manufacturing.
The Trump administration has pursued aggressive trade policies to address imbalance and resume production. – AFP
