Trump Nvidia, AMD China chip revenue deal implications

Nafidia and AMD They agreed to share some of its sales revenues to China with the US government, According to several reportsThis sparked a discussion about whether this step can affect the work of the chips giants and whether Washington may search for similar deals.

In exchange for 15 % of the revenues of chips sales, two semiconductors will receive export licenses to sell NVIDIA H20 and AMD Mi308 chips in China, according to what he said. Financial times.

“We follow the rules set by the US government to participate in the markets around the world. While we have not shipped H20 to China for several months, we hope that export monitoring rules will allow America to compete all over the world,” Nafidia said in a statement to the NBC News. “America cannot repeat 5G and lose communications.

CNBC communicated with AMD and the White House to comment.

Analysts told CNBC that the arrangement designed by the administration of US President Donald Trump is “unusual.” Meanwhile, investors believe that this step is widely positive for both NVIDIA and AMD, which again reach the Chinese market.

Nvidia’s H20 is a chip created specifically to meet export requirements to China. It was previously banned under export restrictions, but the company He said last month He is expected to receive licenses to send the product to China.

Also in Jul, AMD He said It will resume mi308 chips.

At that time, there was no suggestion that the resumption of sales in China would come with circumstances or any kind of revenue confiscation, and the step was celebrated by the markets due to billions of dollars from the potential sales of China that returned to the table.

On Monday, NVIDIA and AMD shares were not traded slightly less in pre -market trading, highlighting how investors believed that the latest development is not a great negative for companies.

“From the investor’s point of view, it is still a positive net. 85 % of revenues are better than scratch,” Ben Bringing, a global technology analyst at Coierter Cheviot, told CNBC.

“The question will be whether NVIDIA and AMD are 15 % price for the tax, but in the end it is better to be able to sell in the market instead of handing the entire market to Huawei.”

Huawei is Nvidia and the closest Chinese AMD.

However, the uncertainty is still on the horizon of the United States in the long run.

“In the short term, the deal gives the two companies some certainty to its exports to China. In the long run, we do not know whether the United States government may want to obtain a greater reduction in their business in China, especially if its sales in China continue to grow,” DIgital PRactice in the Asia Group, tell CNBC.

Futurum Group Daniel Newman It was published on Sunday This step is a “type of tax” for business in China. “

But it is unlikely to be reduced by such deals for other companies.

“I do not expect to extend to other sectors that are no less important than the American economy Like software and services, “Nick Painiesh, the practice of the IQ Agency in the Futurum Group, for CNBC.

The United States believes that semiconductors are strategic technology, given that it supports many other tools such as artificial intelligence, consumer electronics and even military applications. So the United States placed chips under the export control system, unlike any other product.

“The semi -conductors are a unique company and may make a payment tactic to operate with NVIDIA and AMD because it is a lot about obtaining the approval of export from the US government,” said Chen from the Asian Group.

“Other businesses such as Apple and Meta can be more complicated when it comes to their business models and services in China.”

Late last month, Chinese organizers asked Nvidia To clarify reports on potential security weaknesses and “Backdoors”. NVIDIA rejected the possibility of its chips on any “background devices” that would allow anyone to access or control. Sunday, Nafidia again denied The semi -conductors of H20 have background factors after accusations from the social media account of the Chinese government media.

The Global Times, which is run by the Chinese state, criticized Washington’s tactics, citing an expert.

“This approach means that the United States government has denying the original security justifications to pressure American chips to secure export licenses to China through economic leverage,” said the Global Times article.

The Chinese government has not yet commented on the reported revenue agreement.

Trump’s deal with NVIDIA and AMD are likely to raise mixed feelings in China. On the one hand, China will not be satisfied with the arrangement. On the other hand, Chinese companies are likely to want to put their hands on these chips in order to continue to advance their capabilities of artificial intelligence.

“As for China, it is a puzzle because they need these chips to enhance the aspirations of their artificial intelligence, and also that the American government’s fees can make them more expensive and there is doubt about” caliphs “, as we agreed to agree on the chips makers to provide them.”

Erin DOHERTY of CNBC contributed to this report.