Nvidia And AMD Reportedly Chipping In To Washingtons Coffers With 15 Percent Fee For China Sales

Nvidia and AMD will reportedly be allowed to resume sales in China if they cough a license fee amounting to 15 percent of sales.

Reports in The New York Times and Financial Times state folks familiar with the situation as saying Washington granted both chipmakers a license to sell into China last week, a decision that means both can legally resume sales of some modestly-powerful GPUs to the Middle Kingdom.

The reports also say Nvidia and AMD both agreed to the unusual condition that they’ll pay 15 percent of revenue earned from sales under the licenses to Washington.

Governments often charge for business licenses, and some impose taxes that require companies that exploit natural resources such as minerals or fisheries to pay a percentage of their profits.

The Register is not aware of a previous attempt to tax semiconductor exports to a single nation.

Neither chipmaker has confirmed the arrangement, but Nvidia told the Financial Times it follows whatever trade rules the US sets.

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Nvidia has previously told markets that bans on sales to China cost it $10.5 billion in the first half of 2025, and AMD last week informed investors that it missed out on $800 million of revenue last quarter.

If those figures hold steady, Washington could reap $900 million or more each quarter – and possibly plenty more as GPU sales accelerate.

At the time of writing, the Trump administration appears not to have made any public statements on the arrangement, so the reason for the policy and any expected outcomes are unclear.

However, Nvidia CEO Jensen Huang argued for lifting the ban on GPU sales to China on grounds that it would strengthen America’s AI industry, and ensure it retains global primacy.

Just how slugging two leading chipmakers with a substantial tax achieves the administration’s goals is hard to guess. President Trump is known to relish his reputation as a deal-maker who always extracts concessions from those with whom he negotiates.

Shares in AMD and Nvidia stayed flat over the weekend, likely because news of this arrangement broke deep into Sunday in the USA. ®