NVIDIA, AMD make historic deal: Reportedly pay 15% of China sales for H20, MI308 export licenses

NVIDIA and AMD reportedly secured export licenses last Friday to sell their H20 and MI308 chips in China—but at a steep price. According to the Financial Times, the chipmakers have agreed to share 15% of their China revenues as a condition for the approvals.

The report suggest that this marks the first time a U.S. company has accepted revenue-sharing in exchange for export licenses—a move in line with Trump’s playbook of pressuring firms into concessions, such as domestic investments, to fend off tariffs and boost U.S. jobs and revenue.

The Financial Times also highlights that the U.S. granted these licenses just two days after NVIDIA CEO Jensen Huang met with President Trump, with AMD’s China-bound chip exports approved simultaneously.

NVIDIA’s Q1 FY26 report shows China made up 12.5% of sales in the three months ended April 27, 2025—a share likely impacted by Trump’s April 9 export curbs on the H20 chip. For Q2, the company forecasts $45 billion in revenue (±2%), factoring in an estimated $8 billion hit from lost H20 sales under the new restrictions. The company is set to reveal its Q2FY26 results on August 27th.

On the other hand, as noted by CNBC, AMD CEO Lisa Su told investors at the earnings call last week that U.S. export curbs erased MI308 sales to China, dragging AI revenue lower as the company pivots to next-gen chips. The data center unit booked a $155M operating loss in Q2, hit by inventory and charges tied to the restrictions.

An NVIDIA spokesperson told Reuters they follow U.S. rules for global markets. “We haven’t shipped H20 to China for months, but hope export controls still let America compete worldwide.” AMD has yet to comment.

This approval comes as a timely relief amid recent concerns over H20’s security. After U.S. lawmakers have pushed for advanced chips exported from the U.S. to include “tracking and location” features, Chinese officials unexpectedly demanded explanations about potential backdoors and risks in late July, reports Chinese media ijiwei.

Source: TrendForce, Taiwan.