Chip giants Nvidia and AMD to pay 15% of sales revenue in China to US

Nvidia and AMD, two leading semiconductor companies, have agreed to pay 15% of their sales revenue in China to the United States government. This agreement is a condition for securing export licenses to China, the world's second-largest economy. The move comes as the US government tightens export controls on advanced semiconductor technology, aiming to limit China's access to these critical components. The agreement requires the chip giants to share a portion of their China-based revenue with the US, effectively acting as a form of technology export tax. This decision is part of the ongoing tensions between the US and China over technological dominance and national security concerns. The semiconductor industry has become a key battleground, with both countries vying for leadership in this vital sector. The agreement highlights the growing complexities and challenges faced by multinational companies navigating the geopolitical landscape, as they seek to maintain access to lucrative markets while adhering to evolving trade regulations.