Catenaa, Friday, December 12, 2025-President Donald Trump announced that Nvidia can sell its H200 artificial intelligence chips to approved customers in China, provided the US receives a 25% revenue share.
Chinese President Xi Jinping reportedly responded positively to the proposal.
Trump said the policy will support American jobs, strengthen US manufacturing, and benefit taxpayers.
The US Department of Commerce is finalizing details, and the framework will extend to other companies, including AMD and Intel.
Nvidia and AMD had previously agreed to share 15% of revenue from China chip sales with the U.S. government, though China had cautioned against using Nvidia’s H20 chips.
The H200 is a higher-grade AI chip but not the company’s top-tier product.
Nvidia shares rose about 2% in after-hours trading following the announcement. A company spokesperson praised the plan, saying it balances commercial access with U.S. interests.
Semiconductors remain central to US-China competition in AI and broader technology sectors.
The chip trade has factored into past disputes, including China’s rare-earth export controls and potential US tariffs.
A tentative trade truce reached in South Korea in late October included China’s commitment to end retaliatory measures against US chipmakers.
