US Chips Finally Taking a Detour Through China – but at a Cost
Within just 45 days after Washington loosened some export rules on chips, a big deal just landed. Nvidia’s H20 and AMD’s MI308 are now flying back home, every one stamped with a new tax tag and a request to downgrade specs if you’re building the cutting‑edge ones.
What’s the Deal?
- Both chips now need a special export license.
- China can buy them, but the US can slap a 15 percent top‑line tax on the sale.
- Manufacturers must ship lower‑spec versions instead of the latest models.
So the deal opens up a hugely profitable market that still feels like money gold, yet it comes at a price. Nvidia alone could have had tens of billions of dollars of extra revenue from China, and now that slice is practically “taxed out.”
Why Bother?
Washington’s goal is two‑fold: keep American companies competitive at home while stopping the flow of the latest chips to Beijing. Simultaneously, the tax was a bank‑run for the U.S. state itself.
On the flip side, giving China low‑tier chips boosts its AI and computing pie—though still a tier below the “Blackwell‑class” top‑dog tech. It’s a soft push that might close the U.S. gap gradually if all goes according to plan.
China’s New Position
This is essentially a hand‑shake that lets Chinese firms keep buying U.S. chips, just not the absolute best ones. They’re still becoming the world’s second‑biggest player in the sector, thanks to domestic talent and outside help.
U.S. policymakers seem to bet that a steady stream of sales‑tax revenue will fuel America’s push back into the high‑end semiconductor trenches. Whether this gambit works out will only show up in the next 12–18 months.
Global Trade: From Competition to Conspiracy
We’re now witnessing a tug‑of‑war where geopolitics meets flashy money‑making. The delay in the announcement and the new tech talks feel deeply tied to these twists.
TL;DR: The U.S. is opening a door for cheap chips to China, still gating the fancy stuff, while making a tidy tax income. China gets a boost, the U.S. hopes for future gains, and the whole trade dance becomes more about strategy than simple commerce.
