White House Reviewing Legality of Nvidia and AMD Chip Deals with China

The Trump administration is finalizing details of a 15% export tax on Nvidia and AMD, tied to U.S.-approved licenses for China-specific AI chips like Nvidia’s H20, in exchange for a share of sales revenue. Trump confirmed both companies’ deals, though legal experts warn such fees may face regulatory hurdles. The H20 chip, a slowed-down version of Nvidia’s H100/H200 to meet U.S. export rules, was set for $8B in quarterly sales before licensing was required. The U.S. cites national security concerns, fearing Chinese military or government use. China has urged local firms to avoid the H20 for sensitive work.