Nvidia (NVDA, Financials) and Advanced Micro Devices (AMD, Financials) have been cleared by the Trump administration to export certain artificial intelligence processors to China, though only downgraded versions that comply with existing U.S. export restrictions.
The move allows sales of Nvidia’s H20 and AMD’s MI308 both chips specifically developed to meet U.S. export control thresholds. The companies were required to reduce capabilities of their advanced GPUs to qualify for approval, and shipments also need authorization from the Bureau of Industry and Security under the Department of Commerce. The Trump administration lifted the ban on H20 exports in July 2025.
More advanced processors, such as Nvidia’s Blackwell and H200 GPUs, remain restricted and are not part of this deal.
The arrangement requires Nvidia and AMD to share a portion of their sales with the U.S. government, according to reports. The chips are designed in the U.S. but manufactured abroad, including by Taiwan Semiconductor Manufacturing Co. and others.
The U.S. had previously urged firms to scale back engagement with China following the CHIPS Act and broader export controls in 2022. Analysts said the new carveout raises questions about the consistency of U.S. tech policy.
Mario Morales of IDC said the decision shows national security may not be the sole driver of export restrictions, while Paul Triolo of DGA-Albright Stonebridge Group warned that allies could view it as a step back from earlier commitments. Triolo also questioned whether the Commerce Department has the resources to enforce controls on Nvidia GPUs globally.
The Biden administration had lobbied allies to align on semiconductor curbs, but the Trump administration’s deal could embolden Beijing to push for further easing of chip sanctions in future talks.
This article first appeared on GuruFocus.