Nvidia, AMD exports to China will reportedly face 15% fee

The U.S. government will levy a 15% fee on some of Nvidia's and AMD's chip sales to China as a condition of granting them export licenses to sell in the country, the Financial Times reported on Sunday.Why it matters: While export controls for sensitive products are nothing new, charging a company 15% of its revenue to sell a particular product to a particular country would be unprecedented. Driving the news: The two chip companies agreed to the fee structure last week, the FT reported, citing a U.S. government official and other people familiar with the matter. It was not immediately clear how the government would deploy the presumed billions of dollars in fees collected, the outlet said.The deal applies specifically to Nvidia's H20 chip and AMD's MI308, both crucial to AI applications, the FT added.For the record: "We follow rules the U.S. government sets for our participation in worldwide markets. While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide," Nvidia said in a statement in response to the FT report.Neither AMD nor the White House immediately responded to Axios' requests for comment on Sunday evening.What to watch: Just how much the deal ends up being worth.Chinese customers are expected to rush in to buy Nvidia H20s in the face of pent-up demand. The company last month reportedly ordered hundreds of thousands more chips from its manufacturer TSMC to keep up with all that appetite. The company has said being blocked from selling the chip to China cost it $4.5 billion in one quarter alone.

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