In a highly unusual arrangement with President Trump, the companies are expected to kick 15 percent of what they make in China to the U.S. government.
Nvidia and AMD agreed to pay 15% of their revenues from chip sales to China to the US government as part of a deal with the Trump administration to secure export licenses, the Financial Times reported Sunday
-- Bloomberg News (@bloomberg.com) Aug 10, 2025 at 5:40 PM
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Nvidia, AMD to pay 15% of China chip sale revenue to US, official says
www.reuters.com
... The deal is extremely rare for the U.S. and marks President Donald Trump's latest intervention in corporate decision-making, after pressuring executives to invest in American manufacturing and demanding new Intel CEO Lip-Bu Tan resign over ties to Chinese companies. ...
The official did not know when or how the agreement with the chip companies would be implemented, but said the administration would be in compliance with the law.
The U.S. Constitution prohibits Congress from laying taxes and duties on articles exported from any state. The Export Clause applies to taxes and duties, not user fees. ...
'SLIPPERY SLOPE'
Still, analysts and experts questioned the logic of resuming sales if the chips could pose a national security risk.
"Decisions on export licenses should be determined by national security considerations and the tradeoffs of U.S. policy goals, not a revenue-creating possibility," said Martin Chorzempa, senior fellow at the Peterson Institute for International Economics, an independent research institution.
"What it ends up creating is an incentive to control things, to then extract a payment, rather than controlling things because we're actually concerned about the risk to national security."
U.S. Commerce Secretary Howard Lutnick said last month the planned resumption of sales of the AI chips was part of U.S. negotiations with China to get rare earths and described the H20 as Nvidia's "fourth-best chip" in an interview with CNBC. ...
In a highly unusual arrangement...
Posted by retort
That's an interesting way to describe extortion.
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