Nvidia And AMD Give 15% Of China Chip Sales To U.S. Government

Aug 11, 2025 - 13:00
Nvidia And AMD Give 15% Of China Chip Sales To U.S. Government

Microchip and semiconductor giants Nvidia (NVDA) and Advanced Micro Devices (AMD) have struck a deal with the Trump administration to give 15% of the revenues they generate from sales in China to the U.S. government.

In what’s being called an “unprecedented arrangement” with the White House, Nvidia and AMD have received export licenses to sell Nvidia’s H20 and AMD’s MI308 chips in China in exchange for giving 15% of the sales from those chips to the federal government in Washington, D.C.

The arrangement comes as U.S. President Donald Trump implements his tariff regime and seeks to strike lucrative deals with both companies and foreign governments.

In a statement, Nvidia said of the arrangement it has struck with the Trump administration, “We follow rules the U.S. government sets for our participation in worldwide markets.”

Last week, Trump said he would implement a 100% tariff on imports of semiconductors and microchips, unless a company was “building in the United States.”

Since then, several technology companies have announced big investments in America. Apple (AAPL) said it would spend $100 billion U.S. in America over the next four years.

For its part, Nvidia announced in April of this year that it will invest up to $500 billion U.S. over the next four years to build artificial intelligence (A.I.) infrastructure in America.

Nvidia said that part of its U.S. investment will include building A.I. supercomputers.

NVDA stock is up 32% this year and trading at $182.74 U.S. per share, an all-time high on a split-adjusted basis.

AMD’s stock has risen 43% in 2025 to trade at $172.76 U.S. a share.