Harburg: 15% profit share could fund U.S. chip innovation

Market Access & Revenue - Nvidia's Q1 sales to China reached over $45 billion [3] - China accounts for approximately 13-14% of Nvidia's revenue and over 20% of AMD's revenue [5] - Continued revenue from China is crucial for Nvidia and AMD [5] Regulatory & Geopolitical Impact - Initial tariffs were too broad, requiring a more precise approach to target core components aiding the Chinese military or advanced chip development [2] - A 15% profit sharing agreement (potentially a tax or revenue share) will increase chip costs [3][4] - The agreement aims to ensure American leadership in the chip industry and prevent enabling Chinese competitors [4] Strategic Implications - The 15% revenue share could fund further American research and development to maintain chip leadership [3] - The Trump administration could use the 15% revenue share to bolster American innovation and domestic chip building efforts [7] - The agreement represents a transactional, pragmatic approach that prioritizes business without compromising American national security interests [8][9] Innovation & Competition - The US should avoid supplying China with its highest-end chips [6] - The US needs to ensure that money from chip sales to China is reinvested into driving American chip innovation [6] - The agreement provides a blueprint for creative solutions in a complex geopolitical environment [9]