Latest news with #tech trade
France 24
2 days ago
- Business
- France 24
Nvidia, AMD agree to pay US 15% of revenue from sales of AI chips to China
US semiconductor giants Nvidia and Advanced Micro Devices have agreed to pay the United States government 15 percent of their revenue from selling artificial intelligence chips to China, according to media reports Sunday. Nvidia CEO Jensen Huang met with US President Donald Trump at the White House on Wednesday and agreed to give the federal government the cut from its revenues, a highly unusual arrangement in the international tech trade, according to reports in the Financial Times, Bloomberg and New York Times. AFP was not able to immediately verify the reports. Nvidia hits milestone of $4 trillion market value 01:43 Investors are betting that AI will transform the global economy, and last month Nvidia – the world's leading semiconductor producer – became the first company ever to hit $4 trillion in market value. The California-based firm has, however, become entangled in trade tensions between China and the United States, which are waging a heated battle for dominance to produce the chips that power AI. The US has been restricting which chips Nvidia can export to China on national security grounds. Nvidia said last month that Washington had pledged to let the company sell its 'H20' chips to China, which are a less powerful version the tech giant specifically developed for the Chinese market. The Trump administration had not issued licenses to allow Nvidia to sell the chips before the reported White House meeting. On Friday, however, the Commerce Department started granting the licenses for chip sales, the reports said. Silicon Valley-based Advanced Micro Devices (AMD) will also pay 15 percent of revenue on Chinese sales of its MI308 chips, which it was previously barred from exporting to the country. The deal could earn the US government more than $2 billion, according to the New York Times report. The move comes as the Trump administration has been imposing stiff tariffs, with goals varying from addressing US trade imbalances, wanting to reshore manufacturing and pressuring foreign governments to change policies. A 100 percent tariff on many semiconductor imports came into effect last week, with exceptions for tech companies that announce major investments in the United States.
Yahoo
16-07-2025
- Business
- Yahoo
China Chip Ban Eases -- Nvidia, AMD, ASML Poised for Billions
The US just flipped the script on AI chip exports to Chinaand Wall Street is watching closely. Nvidia (NASDAQ:NVDA) announced it has received fresh clearance from Washington to resume shipments of select processors to Chinese customers, with AMD (NASDAQ:AMD) quickly confirming similar approvals. The move reverses earlier restrictions that had shut down a key revenue stream and could unlock billions in sales this year alone. While details remain limited, the development suggests the Biden administration may be taking a more surgical approach to tech tradepreserving national security aims without slamming the door on business entirely. Warning! GuruFocus has detected 4 Warning Signs with NVDA. ASML (NASDAQ:ASML), the Dutch supplier behind the world's most advanced chipmaking tools, may also stand to benefit from any demand rebound in China. If Nvidia and AMD start moving more units, their suppliers could follow. Still, ASML is keeping expectations in check. CFO Roger Dassen said the easing of restrictions could be a net positive for global demand, but the company isn't revising its playbook just yet. In fact, ASML recently pulled back its 2026 growth outlook, citing rising geopolitical risks and a murky macro environment that continues to cloud long-term visibility. Even so, Dassen acknowledged the shift could have meaningful implications. If that ban were to be lifted, that could be seen as a positive for global chip demand for sure, he told reporters. Whether this turns into a sustained policy resetor just a temporary reprieveremains to be seen. But for now, investors betting on the global chip recovery just got one more reason to stay in the game. This article first appeared on GuruFocus.
