US White House Aims to Broaden AI Chip Export Tax Beyond Nvidia and AMD, Amidst Legal Scrutiny

The United States government is actively working to formalize and potentially expand a controversial export tax on high-performance AI chips sold to China. Initially levied on tech giants Nvidia and AMD, this 15% revenue share agreement is under rigorous legal review by the Department of Commerce. This development signals a significant shift in global trade dynamics, particularly within the semiconductor industry, as companies navigate an increasingly complex geopolitical landscape to secure market access.

US Government\'s Stance on AI Chip Exports to China

In a recent announcement, White House Press Secretary Karoline Leavitt indicated a strong intention to broaden the scope of an export tax, initially agreed upon with Nvidia and AMD, to encompass additional technology enterprises. This measure mandates that these leading graphics processing unit (GPU) manufacturers remit 15% of their Chinese sales revenue to the U.S. government. While this arrangement has garnered the attention of former President Trump, who described it as a “release” for the companies in exchange for a payment to the nation, its legal underpinnings are still being meticulously examined by the Department of Commerce.

Leavitt emphasized that although the current agreement exclusively involves Nvidia and AMD, future expansions to include other firms are under consideration. This reveals an evolving strategy from the U.S. administration concerning the export of advanced computing hardware, particularly those critical for artificial intelligence development. Industry experts are closely monitoring these developments, noting that such an imposition of fees for export licenses represents uncharted legal territory. Despite potential legal ambiguities, both Nvidia and AMD have publicly expressed their compliance with these regulations. Nvidia stated its commitment to adhering to all U.S. government directives regarding global market participation, while AMD CEO Lisa Su described such measures as an unavoidable reality of doing business. The prevailing sentiment within these companies appears to be that accepting a 15% levy is preferable to facing a complete ban on exports to the lucrative Chinese market, especially as discussions continue about the potential for future sales of even more advanced chips, like Nvidia’s Blackwell GPUs, under similar conditions. Other companies in the chip production ecosystem, such as Synopsys, Cadence, and Siemens, which have recently seen export restrictions eased, are now viewed as potential candidates for similar taxation. Furthermore, innovators like Tenstorrent, known for its RISC-V based AI accelerators, could also find themselves subject to these new policies. The volatility of U.S. trade policy, marked by rapid shifts and unpredictable announcements, underscores the fluid nature of these regulations.

From a journalist\'s perspective, this unfolding situation underscores the precarious balance between national security interests, economic policy, and technological advancement. The U.S. government\'s decision to impose and potentially expand an export tax on high-end AI chips to China reflects a clear strategic intent to control the flow of critical technology. However, the legal and practical implications of such a policy are vast and complex. While companies like Nvidia and AMD might grudgingly accept these terms to maintain market access, the long-term impact on global supply chains, international trade relations, and the pace of technological innovation remains uncertain. This move could inadvertently incentivize other nations to develop their own advanced chip capabilities, potentially leading to greater fragmentation in the global tech landscape. It highlights the urgent need for clear, consistent, and legally sound frameworks for regulating dual-use technologies in an interconnected world.