AMD says that the U.S. authorities’s license management requirement for exporting AI chips to China and sure different nations might have a fabric influence on its earnings.
If AMD doesn’t efficiently receive a license, the corporate might be on the hook for roughly $800 million in stock, buy commitments, and associated reserves expenses, it stated in a submitting with the SEC on Wednesday. In keeping with AMD, the brand new export guidelines apply to the corporate’s MI308 GPUs.
“On April 15, 2025, [AMD] accomplished its preliminary evaluation of a brand new license requirement carried out by the [U.S.] authorities for the export of sure semiconductor merchandise to China (together with Hong Kong and Macau) and D:5 nations,” AMD wrote within the submitting. “The [export control] applies to [AMD’s] MI308 merchandise. The corporate expects to use for licenses however there isn’t a assurance that licenses will probably be granted.”
AMD’s shares have been down round 6% in early morning buying and selling on Wednesday.
The U.S.’s newly imposed export controls influence a variety of chipmakers, together with AMD’s chief rival Nvidia. In a submitting on Tuesday, Nvidia stated it anticipates expenses of $5.5 billion associated to the export controls within the first quarter ending April 27.
A number of authorities officers have been calling for stronger export controls on U.S.-built GPUs. Permitting China-based firms to acquire these chips, particularly AI firms, would threaten the U.S.’s dominance in AI in addition to its nationwide safety, they argue.
In a press release offered to Reuters yesterday, a U.S. Commerce Division spokesperson stated that the license requirement is in service of “the President’s directive to safeguard our nationwide and financial safety.”
