The Trump administration may consider expanding the revenue-sharing arrangements that it reached with Nvidia and AMD to other U.S. companies, the White House said this week.
Semiconductor companies Nvidia and AMD are expected to pay the U.S. government a portion of the profits they earn from selling certain controlled chips to China, an arrangement that has sparked concerns and questions among exporters, lawmakers and former government officials.
U.S. export controls have so far helped American chip companies maintain technological dominance over Chinese ones, a technology policy expert said this week, which suggests the Trump administration should rethink its decision to allow sales of H20 chips to China (see 2507150013).
The head of a tech policy nonprofit urged the leaders of three congressional committees Aug. 7 to hold a hearing to examine the “large-scale smuggling” of advanced American AI chips into China in violation of U.S. export controls.
The Committee on Foreign Investment in the U.S. last year nearly doubled its site visits and opened multiple investigations on possible filing violations stemming from voluntary disclosures, CFIUS said in its annual report released this week.
Nvidia chips don’t have and shouldn’t be required to have so-called “kill switches” that would allow exported chips to be remotely disabled without the user’s consent, the semiconductor company said this week.
The Trump administration has failed to use sanctions and export controls to help end Russia’s war against Ukraine, the Democratic staffs of the Senate Banking and Foreign Relations committees said in a report released this week.
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The U.S. last week arrested and accused two Chinese nationals of using a California-based company to illegally export tens of millions of dollars' worth of advanced AI semiconductors to China, including by first transshipping the chips through Malaysia and Singapore.
U.S. allies, including in Europe, may back away from their plans to de-risk from China if they continue to see the Trump administration use export controls as a bargaining chip in trade negotiations with China, a panelist said during an event this week hosted by the Center for a New American Security. Others said they’re skeptical about the sustainability of the trade deals announced by the U.S. last week, especially those that commit other countries to large purchases of American goods.