US chipmakers Nvidia and AMD have reached an agreement with Washington to hand over 15% of their semiconductor revenues from China in exchange for export licences to the world’s second-largest economy, a source familiar with the matter told the BBC.

The deal, first reported by the Financial Times, applies to Nvidia’s H20 and AMD’s MI308 chips—both developed for the Chinese market in response to previous US export restrictions. Under the arrangement, Nvidia will remit 15% of H20 sales revenue from China to the US government, with AMD committing to the same percentage from MI308 sales.

Nvidia confirmed the agreement in a statement, emphasising the importance of maintaining America’s lead in advanced technology. “We follow rules the US government sets for our participation in worldwide markets. While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide,” the company said.

The H20 chip had been banned earlier this year under the Trump administration over national security concerns, despite being specifically tailored for China following 2023 restrictions imposed by the Biden administration. The reversal of the ban follows months of lobbying by Nvidia chief executive Jensen Huang, who reportedly met President Donald Trump last week. AMD did not immediately respond to requests for comment.

The agreement comes as tensions between Washington and Beijing show signs of easing. Beijing has loosened controls on rare earth exports, while the US has relaxed restrictions on chip design software companies operating in China. In May, both sides agreed to a 90-day pause in their tariff dispute, with further talks underway before the truce expires on 12 August.

The US government has also been pushing for increased domestic investment from major tech firms. Apple recently pledged an additional $100 billion in US spending, while Micron Technology has committed to $200 billion in projects, including a new facility in Idaho. Nvidia has announced plans for AI server projects worth up to $500 billion, with a pledge to build the first entirely American-made AI supercomputers.