US Government May Increase Expenses for Exported Goods Due to Agreements with Chip Manufacturers
The US government's unique export fee model, which currently targets the semiconductor industry, could potentially extend to other strategic technology sectors in the future. This revelation comes from US Treasury Secretary Scott Bessent, who referred to the model as a "beta test" for potential application in other industries [3][4].
Initially, the semiconductor industry has been the focus of this fee-based export license model. Companies such as Nvidia and AMD are required to pay a 15% fee for their Chinese sales, with the funds going to the US government [1]. The Trump administration's stringent rules for semiconductor sales to China were initially so restrictive that they halted the delivery of Nvidia's AI chips [2]. However, Nvidia's CEO, Jensen Huang, managed to persuade the administration for a turnaround in the rules [2].
The semiconductor export license-revenue sharing deal, as described by Secretary Bessent, serves as a model for future government deals with other industries [3][4]. While no specific additional industries have been publicly identified for such licensing fee arrangements, there is strong speculation that high-technology industries or sectors critical to US technological advantage or national security might be candidates [5].
This approach, which resembles an export tariff or tax, has sparked controversy due to its constitutional prohibition on exported goods [4]. It also challenges traditional export controls by effectively allowing companies to "pay to bypass" restrictions meant to curb technology transfer to China [5]. Legal experts and former officials have questioned the statutory authority for charging fees tied to export licenses, referencing the Export Control Reform Act which forbids fees for license application processing [3].
In the spring, the Trump administration tightened rules for semiconductor sales to China, impacting Nvidia's ability to deliver its H20 systems to China, a product line in the AI chip market [6]. The agreement between the US government and Nvidia and AMD for exporting to China is noteworthy, given its potential implications for other industries in the future [7].
The move to expand the fee collection model to other industries is imaginable, according to Secretary Bessent, who has suggested that the industries most directly implicated are currently semiconductors and advanced technology components, specifically high-end computer chips [3][4]. Beyond semiconductors, strategic or frontier technologies linked to national security, such as AI hardware, advanced manufacturing equipment, or emerging frontier technologies, might be candidates for this export licensing fee approach [5].
However, no explicit confirmation or naming of other industries from Secretary Janet Yellen or equivalent officials has been found in the search results, only Scott Bessent’s remarks on the semiconductor licensing fee model serving as a potential template.
References:
- Bloomberg TV Discusses US Government's Fee Collection Agreement with Nvidia and AMD for Exporting to China
- Nvidia CEO Jensen Huang's Role in Changing Trump Administration's Rules for Semiconductor Sales to China
- Legal Challenges to US Government's Export Licensing Fee Model
- US Government's Export Licensing Fee Model: A Constitutional Conundrum
- The Controversial US Government's Export Licensing Fee Model: An Overview
- Trump Administration's Rules for Semiconductor Sales to China Impact Nvidia's Delivery of AI Chips
- The Agreement between the US Government and Nvidia and AMD for Exporting to China
Read also:
- Unchecked Management of HP Dams Leads to Environmental Disaster: RTI Reveals
- Impact of Trump's Enforced Russia Sanctions Could Compel Putin's Decision-Making
- Nordstrom taps prominent New York residents for their second advertising campaign in the city.
- Harnessing Magnetism's Potential: Revolutionizing Energy Production for a World Transformed
