The U.S. government has introduced a groundbreaking requirement: Nvidia and AMD must hand over 15% of their AI chip revenues from sales to China in order to receive export approvals.
15% REVENUE CONTRIBUTION
Nvidia and AMD are obligated to pay 15% of their AI chip earnings from China back to the U.S. government as part of the export licensing process.
SECURITY + STRATEGIC EDGE
This move highlights Washington’s determination to preserve its technological lead while addressing national security concerns in the intensifying global race for AI dominance.
Tariffs and Trade Deals: Effects on Semiconductor Pricing
20% TEMPORARY TARIFF
The U.S. has rolled out new tariffs on imported finished semiconductors—set at roughly 20% under Section 232. However, exemptions negotiated through agreements with allies such as South Korea, Malaysia, and the EU are softening some of the impact.
A provisional 20% duty on imported semiconductors raises costs sharply for overseas suppliers unless mitigated by trade exceptions.
EXEMPTIONS VIA DEALS
Bilateral and multilateral trade arrangements are being leveraged to shield certain key manufacturing inputs and equipment from the full weight of these tariffs.
Trump Proposes 100% Tariff
Former President Trump has floated a sweeping 100% tariff on foreign semiconductors, with carve-outs for companies investing in American manufacturing. In anticipation, Apple has unveiled a $600 billion commitment to its U.S.-based production strategy through the American Manufacturing Program (AMP).
The suggested measure would effectively double the cost of imported chips, intended to accelerate the shift toward domestic semiconductor capacity.
APPLE’S HISTORIC DOMESTIC COMMITMENT
Apple has pledged $600 billion in U.S. investment under its AMP initiative, echoing earlier moves to reinforce local production and supply chain resilience.
