The two U.S. chip manufacturers Nvidia and AMD agree to pay 15% of their chip sales revenue in China to the U.S. government in exchange for export licenses.

According to confirmation from the White House on August 12, this agreement currently applies to the two companies mentioned and may expand to other businesses in the future. The U.S. Department of Commerce is continuing to finalize the legal framework and detailed operational processes.

MAIN CONTENT

  • Nvidia and AMD agree to pay 15% of chip revenue in China to the U.S. government.

  • The agreement currently applies only to the two companies but may be expanded.

  • The U.S. Department of Commerce is researching the legal and operational details of the agreement.

What agreement have Nvidia and AMD reached with the U.S. government regarding chip exports to China?

Direct answer: The White House confirms that Nvidia and AMD will pay 15% of their chip sales revenue in China to the U.S. government to receive export licenses.

According to CNBC, on August 12, the White House announced this special agreement to control the export of chip products to China. In this way, the two leading U.S. chip companies will comply with government requirements while retaining their right to export to this important market.

This is a measure to balance corporate profits and control sensitive technology, providing the White House with additional revenue and controlling technological development in the China region.

Which other companies could the agreement expand to in the future?

Direct answer: The agreement currently only applies to Nvidia and AMD but may be extended to other U.S. chip companies in the future.

White House spokesperson Carolyn Levitt stated at a press conference that although it initially includes only two companies, the government does not rule out the possibility of expanding the agreement to other chip manufacturing businesses to enhance control over the strategic technology sector.

This reflects a change in U.S. technology export policy, expected to enhance oversight, while significantly impacting the cryptocurrency market as many chips related to mining and Smart Contract processing depend on these manufacturers.

"This agreement is currently limited to Nvidia and AMD, but may be applied to more companies in the future to ensure national security and trade interests."

Carolyn Levitt, White House spokesperson, August 2024

What issues is the U.S. Department of Commerce handling related to this agreement?

Direct answer: The U.S. Department of Commerce is researching the legal basis and detailed operational processes for the agreement to collect 15% of revenue from chip exports to China.

The department stated it is conducting a comprehensive review of related regulations to ensure the agreement can be implemented effectively and legally, and will announce specific details in the near future. This aims to create transparency and consistent application for participating companies.

This process is crucial to consider the economic and defense implications while ensuring alignment between export policies and the goals of protecting U.S. strategic technology.

Frequently asked questions

How will this agreement affect the global chip market?

The agreement may increase chip prices and complicate the export process to China, affecting the global supply chain.

Could other companies be subjected to a similar agreement?

It is possible that the White House is considering expanding the agreement to include more chip manufacturers to control exports.

When will the Department announce detailed information?

The department is finalizing the process and will announce specifics in the near future to ensure transparency and legal compliance.

Does the agreement affect the cryptocurrency industry?

Could it affect the supply of chips for cryptocurrency mining due to the export of critical chips?

Are Nvidia and AMD the only two companies currently affected?

Currently only including two companies, but the agreement could expand to other businesses in the future.

Source: https://tintucbitcoin.com/nvidia-amd-phai-nop-15-doanh-thu/

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