Nvidia and AMD Face 15% Levy on China Chip Sales by US Government

Nvidia and AMD may need to pay 15% of their China chip sales to the US government, according to recent reports. This proposed requirement ties directly to ongoing US export controls on advanced semiconductors. Trade experts are raising concerns about this arrangement, suggesting it may set a new precedent for linking export permissions to monetary payments.

Nvidia and AMD chip sales to China news image

US-China Chip Tensions Intensify

The US government has tightened its grip on the semiconductor industry with strict export controls to China. Now, chip giants like Nvidia and AMD could be forced to share a portion of their revenue from the Chinese market.

Potential Impact on the Chip Industry

Analysts warn that this move could greatly impact the companies’ profits and global chip supply chains. It also raises questions about the future of technology trade between the US and China. As the rivalry heats up, semiconductor firms must navigate both regulatory and financial hurdles to maintain their global presence.

Sources:
Al Jazeera – Nvidia, AMD to pay 15% of China chip sales to US government, reports say