Trump Scores Huge Win: Chip Giants to Hand Over 15% of China Profits to U.S.
In an unprecedented deal, the Trump administration has secured a revenue-sharing agreement with Nvidia and AMD that will funnel 15% of their China-market earnings directly into U.S. coffers — but not everyone in Washington is celebrating.
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Chipmakers Nvidia and AMD have agreed to hand over 15% of their revenue from semiconductor sales in China to the U.S. government, under a groundbreaking export-license arrangement brokered by the Trump administration.
The agreement emerged after intense negotiations, including a high-profile meeting between Nvidia CEO Jensen Huang and President Donald Trump, which ultimately unlocked long-delayed export licenses for China-bound chips.
A ‘Give-and-Take’ Deal With Beijing in the Middle
Never before has an American company agreed to share part of its revenue in exchange for export permissions. But the move is in line with Trump’s “America First” deal-making style — leveraging tariffs, trade barriers, and targeted demands on corporations to secure U.S. jobs, investments, and now direct income streams for the Treasury.
Under the deal, Nvidia will pay 15% of revenue from sales of its China-specific H20 AI chips, while AMD will contribute the same rate from its MI308 chips. Both products were engineered to comply with Biden-era export controls that banned the sale of more advanced AI semiconductors to China’s military-linked sector.
Security Experts Cry Foul
Critics warn the H20 chips could still strengthen China’s military AI capabilities. “Beijing must be thrilled to see Washington turn export licenses into a revenue source,” said Liza Tobin, a China expert who served on Trump’s first National Security Council. Jeff Gertz, senior fellow at the Center for a New American Security, questioned the logic: "Either selling H20 chips to China is a national security risk — in which case we shouldn’t do it — or it isn’t a risk, in which case why impose a penalty on the sale?"
A senior U.S. official countered that the administration does not believe the H20 or MI308 chips pose a genuine security threat. Commerce Secretary Howard Lutnick even argued it’s in America’s interest for Chinese companies to remain dependent on U.S.-built technology stacks — even if the very top-tier chips remain off-limits.
China: A Critical Market
China remains a major revenue source for both companies. In its fiscal year ending January 26, Nvidia reported $17 billion in China sales — 13% of total revenue. AMD brought in $6.2 billion from China in 2024, representing 24% of its overall earnings.
Bernstein analysts estimate Nvidia could have sold 1.5 million H20 chips to China in 2025, generating $23 billion in revenue, if not for the export restrictions.
Nvidia did not dispute the deal, stating: "We operate under the rules set by the U.S. government for participation in global markets."