Nvidia’s 15% China Sales Levy: AMD Faces Parallel Pressure in US Tech Crackdown

The US Chinese chip war strikes NVIDIA and AMD: 15 % tax on China sales

The last revelation that NVIDIA must pay the United States government by 15 % of its revenues from advanced chip sales to China, emphasizing the escalating American campaign to limit China’s access to critical semiconductor technology. While NVIDIA was a more clear focal point due to its dominance in AI graphics processing units, its main competitor, AMDIt is the movement of the same treacherous terrain in the framework of identical anti -export regulations, while facing similar strategic and financial opposite winds.

AMD: It caught the same export control network

Like NVIDIA, AMD designs high-performance graphics processing units and accelerators (instinctive MI chain) necessary to train artificial intelligence, high-performance computing (HPC), and data centers-the same applications targeted by American security concerns. Thus, AMD has been subjected to The same rules of export control Since the late 2022, the US Department of Commerce imposed and tightened it in 2023.

1. Product adjustments: Just as I developed NVIDIA H800 and A800 (and then H20, GH20 and L20) specifically for the Chinese market by reducing performance to stay under the American technical thresholds, AMD followed her example. It has created modified versions of its pioneering instincts, such as MI210 and MI309, designed to comply with the performance limits while continuing to provide value to Chinese clients. This requires a major investment in the field of research and development and creates a complex strategy for the double product.
2. A 15 % tax applies globally: The condition of transferring 15 % of the sales revenues of these high -performance chips restricted to China is It is not a penalty for Nevidia. It stems from the wider American export control framework and the related licensing requirements. AMD is equally obligatory to comply with this financial ruling When selling its modified accelerators, but still strong, in the Chinese market. This directly affects the AMD profitability of China sales, just as for NVIDIA.
3. Market share and strategic dilemma: China represents a huge market for data center and artificial intelligence devices. While NVIDIA currently has a larger share, AMD was competing strongly. Forced amendments and tax by 15 % Employment of competitiveness and margins of both companies In China. AMD must decide how strong this restricted market, balancing possible revenue gains for compliance costs, research and development for modified chips, and direct financial strikes for tax. Passing the full cost of 15 % for Chinese customers, making their products not competitive against local alternatives or other international players less affected by the rules.
4. Speeding the China’s household batch: The restrictions that affect both the United States giants are a major incentive for the semiconductor industry in China. Companies like Huawei (with AI’s ascension chips), Cambricon and Iluvatar Core receive governmental and private investments to develop alternatives. AMD, along with NVIDIA, is funding its future competitor in China Through the tax and the creation of the market space for local players to fill the performance gap left by the troubled American products.

The wider industry effect

The AMD inclusion highlights that the US export controls and the financial burdens associated with it Regular pressure on the high -performance computing sector in the entire United StatesNot isolated against one company. Other companies that sell advanced chips or chips industry equipment face similar, although they may be less detailed for the public, compliance costs and restrictions.

The road forward for AMD

The AMD Nvidia strategy reflects several ways:

• compliance: He accurately adheres to export rules to avoid severe penalties.
• Product air conditioning: Continue to develop “China Venetic” versions of its leading products.
• Cost/Success: Prices are carefully managed to accommodate some cost of 15 % tax with an attempt to stay competitive.
• diversification: Emphasizing growth in other regions (North America, Europe, Japan and India) and in the markets less affected by controls (for example, commercial or consumers).
• the pressure: Inclusion with American policy makers to seek clarity or potential amendments to the rules, although the general track of the most tight controls appears to be firmly established.

A 15 % tax on China chips sales is a flagrant symbol of the new reality of American semiconductor leaders. While the size of NVIDIA and the dominance of artificial intelligence makes it the main address, AMD is closely related to this epic, as it faces identical regulatory burdens, financial sanctions, and strategic challenges. The American policy aims to hinder the technological rise in China, but it also imposes significant costs and operational complications on its champion companies. While AMD and NVIDIA moved this restricted scene in China, the global semiconductor manufacturer continues to be woven towards competing technological blocs, with a 15 % tax as a tangible and cost -effective reminder of the deep geopolitical rift lines that pass through the world of technology.

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