Nvidia, AMD Will Give Cut of China Chip Sales to US

US-China Trade & Technology War - The US is potentially imposing an export tax on companies exporting technology to China, which is unorthodox and possibly unconstitutional [1][2] - The administration's pursuit of revenue generation through trade policy and export controls, including high-end semiconductors, raises questions about the definition of "too advanced" technology [3] - Companies like NVIDIA and AMD have received initial China licenses for chip exports [3] - China expresses concern about information security and potential backdoors in US technology, particularly drones [5] - The US aims to create an American chip champion amidst Intel's challenges, suggesting potential dealmaking [6] - The long-term access of companies to the Chinese market remains uncertain due to the intensifying US-China competition [4][7] Semiconductor Industry & Export Controls - The administration assumes that inference compute is not a primary national security concern [9] - If Huawei can produce comparable chips, US chip controls might ease to allow US companies to compete [9] - The US is in a highly transactional phase, and the degree of concern about end-uses and economic competitiveness remains to be seen [10] - The argument exists that restricting American technology exports could lead China to develop and export its own technology [11] - China is pushing for an easing of the 20% fentanyl tariffs and high bandwidth memory (HBM) chip restrictions [13] - Restricting exports to constrain Chinese chip production could help US companies gain market share in China [16] China's Leverage & Response - China possesses significant leverage through its control over critical raw materials and rare earth licenses [17] - China could restrict licenses for critical inputs, potentially paralyzing US production lines [17][18]