Nvidia and AMD, two of the world’s leading chipmakers, have agreed to pay 15% of their China sales revenue to the US government. This new policy comes as these tech giants seek licenses to continue exporting their advanced chips to the Chinese market.
US Government Tightens Export Rules
The US government has implemented stricter rules on chip exports to China. These rules aim to address concerns over national security and technological competition. In response, Nvidia and AMD decided to comply by sharing a portion of their China-based revenues. This move allows them to maintain their business ties with one of the world’s largest markets for semiconductors.
Impact on the Global Chip Market
This agreement highlights the ongoing tension between the US and China in the tech sector. By accepting the 15% levy, Nvidia and AMD can continue supplying advanced chips to Chinese companies, but they must also navigate increased oversight and costs. The decision could set a precedent for other tech firms operating internationally.
Sources: BBC News Article
