Increased Frequency in US Export Revenues - Increased Involvement of U.S. Government in Export Activities
U.S. Government Implements Unique 15% Fee on AI Chip Exports to China
The U.S. government has implemented a 15% fee on revenue from certain AI chip exports by Nvidia and AMD to China, as a condition for granting export licenses. This novel arrangement applies specifically to advanced AI chips like Nvidia’s H20 and AMD’s MI308, which are specially slimmed-down versions that meet U.S. export performance thresholds.
The agreement was negotiated under the Trump administration, initially with a proposed 20% fee that was negotiated down to 15%. Nvidia CEO Jensen Huang and AMD successfully persuaded the U.S. government for a turnaround in the export restrictions, allowing them to continue sales in China while providing the government a cut of the proceeds.
The chipmakers agreed to the deal to preserve critical access to the large Chinese AI chip market and to gain regulatory certainty amid ongoing U.S.-China tech tensions. The fee may reduce their profit margins by 5–15 percentage points, but sales remain highly attractive due to their technological edge and strong pricing.
U.S. Treasury Secretary Steven Mnuchin expressed an openness to the idea of expanding the agreement to other industries over time. Analysts view this 15% revenue-share model as a potential precedent for taxing other regulated exports beyond semiconductors, particularly where strategic technologies or economic sectors intersect with national security and trade policy. However, detailed implementation plans and broader applicability remain unclear at this stage.
In summary:
- The model: 15% of revenue from specific AI chip exports to China goes to the U.S. government as a condition of export licenses.
- Purpose: To finance government interests while allowing controlled access to China’s market.
- Potential extension: Seen as a possible new tool to apply fees on other sensitive technology exports or sectors under export controls, but not yet broadly implemented or finalized otherwise.
This marks a significant shift from traditional export controls that usually involve outright bans or licenses without direct fees, indicating a novel revenue-based control strategy by the U.S. government.
The Commission might be asked to submit a proposal for a directive on the protection of the environment, aiming to incorporate a fund financed by a potential 15% revenue-share model derived from the export of advanced AI chips, as this model could be expanded to other sensitive technology exports or sectors intersecting with national security and trade policy. This move could help businesses reinvest in technology and innovation, thus promoting environmental protection alongside global trade.
By examining this unique 15% revenue-share model on the export of AI chips, the Commission may consider formulating guidelines for businesses to allocate a portion of the proceeds towards environmental protection initiatives, thereby fostering a more sustainable and responsible business landscape.
