The tech rivalry between the US and China over chips (semiconductors) seems to be intensifying by the day,
and now the government officials in the US have revealed that Nvidia and AMD will pay 15% of China's chip sale revenues to the US. This is the condition placed on both companies in order for them to secure their export license, and it is a way for the US government to assert control over the lucrative semiconductor sector. However, critics argue that this sets a dangerous precedent, as it undermines the integrity of export controls by turning them into revenue sources.
Some of the exported chips include Nvidia’s H20, which were previously halted by U.S. President Donald Trump's administration in April. These H20 chips are of significant importance due to their use in artificial intelligence applications. However, China’s state media has launched a sharp critique of Nvidia’s H20 AI chips, claiming they are “not safe” for Chinese use due to alleged vulnerabilities and performance issues. This also shows that even in China, there is a growing public resistance towards relying on American technology.
Meanwhile, Intel CEO Lip-Bu Tan, who has been in Trump’s crosshairs recently, when Trump called for his firing, is now set to meet President Trump at the White House today. In the meeting, he is expected to explain his personal and professional background and discuss how Intel can work together with the U.S. government to handle these ongoing supply chain challenges.
