The United States has just converted a national security tool into a revenue stream, forcing Nvidia and AMD to surrender 15% of their China chip sales to Washington. What began as a semiconductor export control is now a blueprint for governments to claim stakes in private companies’ earnings.
Donald Trump has just invented a new form of corporate taxation that will reshape global commerce. His deal, forcing Nvidia and AMD to surrender 15 per cent of their China chip sales revenue to the US government, establishes the precedent for governments to claim ownership stakes in private companies' foreign earnings through export license leverage.
According to the terms of the agreement, Nvidia will pay Washington 15 per cent of revenue from its H20 AI accelerator sales in China, while AMD surrenders the same percentage from its MI308 chip sales. Both companies receive export licenses allowing them to serve Chinese markets with chips designed to comply with US restrictions. Trump originally demanded 20 percent but settled for 15 percent after negotiations.
The principle of this deal is revolutionary, as the US government has declared that American companies' access to foreign markets constitutes a privilege that must be purchased through ongoing revenue sharing rather than one-time licensing fees.
The Fershman Journal
