Chinese President Xi Jinping “reacted positively” to the suggestion, Trump mentioned in a Truth Social post.
The initiative “will bolster American jobs, enhance U.S. manufacturing, and benefit American taxpayers,” Trump stated.
“The Department of Commerce is finalizing the specifics, and the same strategy will apply to AMD, Intel, and other EXCEPTIONAL American companies,” he added in the post.
Both Nvidia and its competitor AMD, or Advanced Micro Devices, consented in August to distribute 15% of the earnings from chip sales to China to the U.S. government. However, around the same period, China reportedly cautioned businesses against utilizing the H20 AI chip that Nvidia created specifically for the nation.
The H200 represents a superior-grade chip compared to the H20, but it is not the company’s highest-end product.
Nvidia’s stock rose earlier Monday after news that the Commerce Department was ready to approve the sales to China, but later reduced those increases. The shares increased by approximately 2% in after-hours trading.
“We commend President Trump’s decision to enable America’s chip sector to compete and foster high-paying employment and manufacturing in the U.S.,” a representative from Nvidia told CNBC in a statement.
“Providing H200 to vetted approved commercial clients, as determined by the Department of Commerce, achieves a balanced approach that is beneficial for America,” the representative stated.
Semiconductors, which are essential components in nearly all types of electronics, are at the forefront of the AI competition between the U.S. and China.
They have also played a significant role in the volatile trade dynamics between the two economic giants.
When Beijing enforced export restrictions on rare-earth minerals, utilized in the fabrication of some advanced chips, the Trump administration warned of a significant increase in tariffs on U.S. imports from China.
After a meeting in South Korea in late October, Trump and Xi reached a provisional trade agreement where China promised to halt “retaliation” against U.S. chip manufacturers, according to the White House.
Trump stated following that meeting that he conversed with Xi about the export of Nvidia chips.
