Leading semiconductor companies Nvidia and AMD have agreed to pay the US government 15% of their chip sales in China, the BBC reports, citing sources.
The arrangement is part of a deal to secure US export licenses to the world’s second-largest economy.
Under the deal, Nvidia will pay the US government 15% of its revenue from sales of H20 chips in China. AMD will pay the same percentage of revenue from sales of its MI308 chips in China.
“We comply with the rules set by the US government for our participation in global markets. Although we have not shipped H20 to China for several months, we hope that export control rules will allow America to compete in China and around the world,” Nvidia said in a statement to the BBC.
AMD did not immediately respond to a request for comment.
Charlie Dye, vice president and principal analyst at research firm Forrester, said the deal was “unprecedented.”