US Treasury Secretary Hints at Expanding Revenue-Sharing Deal to Other Industries

US Treasury secretary Scott Bessent has suggested that the unprecedented revenue-sharing agreement struck with chipmakers Nvidia and AMD could be expanded to other industries. The deal, which will see Nvidia and AMD give the US government 15 per cent of their Chinese chip sales in exchange for export licences, has been hailed as a model for future cooperation. Bessent played down fears that the arrangement would undermine national security, arguing that the semiconductors in question were not advanced enough to pose a risk.

Key Takeaways:

• The US Treasury secretary, Scott Bessent, has hinted at expanding the revenue-sharing agreement with Nvidia and AMD to other industries, citing the success of the model as a beta test.
• The deal, which will see Nvidia and AMD give the US government 15 per cent of their Chinese chip sales in exchange for export licences, was negotiated by President Donald Trump as a way to boost US government coffers and counter China's global infrastructure initiative.
• Bessent played down fears that the arrangement would undermine national security, arguing that the semiconductors in question were "levels down the chip stack" and not advanced enough to pose a risk.
• Trump has confirmed that the deal with Nvidia and AMD is a one-time arrangement, but has hinted that he may consider expanding the agreement to allow Nvidia to export its advanced Blackwell chips to China.
• Bessent suggested that allowing Nvidia to sell its H20 chips in China would make them "the bellwether for Chinese technology", while also boosting US government's coffers.
• The deal is seen as a way to counter China's growing influence in the tech sector, with Bessent warning against the risk of Huawei dominating the global technology landscape.

Statistics:

• 15%: The percentage of revenue that Nvidia and AMD will give the US government in exchange for the export licences.
• H20: The type of chip that Nvidia is allowed to sell in China under the deal.
• MI308: The type of semiconductor that AMD is allowed to sell in China under the deal.
• Blackwell: The advanced chip that Trump has hinted at allowing Nvidia to export to China.
• Beta test: The term used by Bessent to describe the revenue-sharing agreement with Nvidia and AMD as a model for future cooperation.

Sources:

• Financial Times (no date mentioned)
• Direct quote from US Treasury secretary Scott Bessent
• Direct quote from President Donald Trump