Nvidia and AMD have reportedly received authorization to resume sales in China contingent upon paying a 15 percent licensing fee on their revenues. This decision, reported by The New York Times and Financial Times, marks a significant shift in U.S. trade policy concerning the semiconductor industry. Both companies are complying with U.S. trade rules, even as Nvidia noted substantial revenue losses due to previous bans. The implications of this policy remain unclear, with industry leaders like Nvidia's CEO advocating for the lifting of restrictions to bolster U.S. leadership in AI technology.
Nvidia and AMD will reportedly be allowed to resume sales in China if they pay a license fee of 15 percent of sales, according to reports from The New York Times and Financial Times.
Both chipmakers have reportedly agreed to the unusual condition of paying 15 percent of revenue earned from sales under the licenses to Washington.
Nvidia indicated that bans on sales to China might have caused it a $10.5 billion revenue loss in the first half of 2025, reflecting the significant impact of trade restrictions.
Nvidia's CEO stated that lifting the ban on GPU sales to China could strengthen America's AI industry and ensure its global primacy.
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