U.S. government imposes fee on Nvidia, AMD exports to China
Axios1 day
Nvidia, AMD Agree to Pay US 15% of China Chip Sales Revenue
Above: An Nvidia chip seen through a magnifying glass. Image copyright: VCG/Getty Images
The Spin
Pro-establishment narrative
This deal is a smart business strategy that keeps America competitive while generating revenue. The arrangement ensures that U.S. companies can compete in the world's largest semiconductor market, rather than ceding ground to Chinese rivals like Huawei. Revenue sharing creates a win-win situation where the government benefits financially while American tech maintains global leadership.
Establishment-critical narrative
The revenue-sharing arrangement not only undermines national security by turning export controls into a profit center, but also unbalances the traditional relationship between government and business. This precedent, which essentially sells national security for corporate profits in exactly the wrong domain, could encourage China to pressure for more concessions on sensitive technologies like semiconductor manufacturing tools.
Pro-China narrative
The unusual move underscores the importance of the Chinese market for U.S. chipmakers. Nvidia was forced to cut prices to compete with Huawei's more advanced Ascend chip. Despite U.S. chip bans, China's AI sector continues to thrive, with leaders like Baidu and Huawei driving innovation. The real constraint on Nvidia's sales in China isn't a lack of demand, it's U.S. sanctions that prevent broader adoption of its full-performance chips.