• U.S. Treasury Secretary Scott Bessent champions a new revenue-sharing model for chip exports to China, moving away from outright bans.
  • Nvidia and AMD will contribute 15% of their sales revenue from approved chip exports in China to the U.S. Treasury.
  • The policy is designed to mitigate strategic supply chain risks while maintaining economic leverage and generating government revenue.

Treasury Secretary Scott Bessent has articulated a new, nuanced approach to managing the strategic risks in the global semiconductor sector, emphasizing the urgent need to eliminate "single points of failure" that threaten both economic and national security. The comments follow the unveiling of a landmark agreement with leading U.S. chipmakers that fundamentally shifts the U.S. stance on technology exports to China.

Under the newly brokered deal, Nvidia has been cleared to export its H20 accelerator chips to the Chinese market, while rival AMD will be able to ship its MI308 chips. Both products have been designed to comply with existing U.S. export controls on computing performance. In a unique arrangement, the companies have agreed to contribute 15% of the sales revenue generated from these specific chips in China directly to the U.S. government.

Secretary Bessent described the model as "unique" in a recent briefing and suggested it could serve as a template for other industries facing similar geopolitical tensions. The primary objective, he stated, is to address systemic risk by diversifying international chip flows and reducing the kind of overdependence on any one supply chain or region that has caused significant disruptions in recent years.

This policy marks a significant departure from the previous strategy of imposing strict export bans, which had impacted the bottom lines of U.S. tech giants and accelerated China's push for technological self-sufficiency. By opting for a fee-based export license, the administration aims to retain U.S. value from these critical exports without ceding global market share to international rivals. The new revenue stream is intended for national debt reduction, according to people familiar with the matter.

“What we cannot afford is a critical chokehold on the technology that powers our modern economy,” Bessent said, framing the move as a pragmatic solution to a complex problem. The deal has, however, sparked debate among policy experts. Some support its pragmatic approach to maintaining leverage, while others have privately warned it may inadequately address long-term security risks or set an unstable precedent for technology governance.

For Nvidia and AMD, the arrangement offers a path to regain access to the world's largest semiconductor market, albeit at a significant cost. Both companies have shown strong revenue growth from cloud, AI, and enterprise segments in 2025, though previous export restrictions had notably impacted their China business. A spokesperson for Nvidia declined to comment on the financial specifics of the arrangement. AMD did not immediately respond to a request for comment.

The unfolding situation represents a significant innovation in trade policy with the potential to reshape global semiconductor markets. Bessent indicated that similar revenue-sharing strategies are already being discussed for other sensitive sectors, including rare earth minerals and certain defense technologies, as the U.S. continues to grapple with supply chain vulnerabilities.