AMD confirms it will pay 15% tax to resume AI chip shipments to China under Trump deal

AMD Secures Export Licenses for MI308 AI Chips

AMD CEO Lisa Su confirmed at a Wired conference in San Francisco that the company has obtained U.S. export licenses to ship its MI308 AI chips to China and is prepared to pay a 15% U.S. tax on these exports 1

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. The announcement marks a significant development in the ongoing tech trade relationship between the United States and China, as AMD moves to restart AI chip shipments to China after months of regulatory uncertainty. Speaking with senior writer Lauren Goode, Lisa Su stated that AMD will comply with the Trump administration's fee structure to resume selling these export-compliant chips to the Chinese market 2

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Trump Administration Deal Faces Constitutional Questions

In August, Donald Trump announced his administration had reached an agreement with Nvidia and AMD that would allow them to resume shipping certain chips to China in exchange for paying a 15% fee . Some legal experts have argued this arrangement could violate the U.S. Constitution's ban on taxing exports, raising questions about the long-term viability of this approach 3

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. The U.S. had previously halted MI308 sales to China before beginning to review applications again over the summer. AMD earlier warned that losing access to China for this export-compliant chip could reduce its revenue by roughly $800 million 2

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China Pushes for Domestically Produced AI Chips

Su's comments arrive as China intensifies efforts to reduce reliance on American technology and foreign silicon. Last month, Beijing reportedly ordered state-funded data centers to stop using foreign AI chips in new projects, requiring them to adopt domestic alternatives instead 2

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. This guidance is likely to affect U.S. firms including AMD, Nvidia, and Intel 3

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. China's foreign ministry responded to the latest U.S. move by urging the American side to take concrete actions to maintain stability and smooth operation of global supply chains 3

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Understanding the MI308 AI Accelerator

The MI308 AI accelerator represents a downgraded version of AMD's Instinct MI300X series, specifically designed to comply with export controls for sale to China 3

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. The chip was placed under export restrictions alongside Nvidia's H20 in April. During AMD's second-quarter earnings call, Su emphasized that "China is an important market for us," underscoring the strategic significance of maintaining access to Chinese customers 2

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AMD's Strong Performance and Future Growth

The remarks follow AMD's stronger-than-expected third-quarter results, with the company reporting $9.25 billion in revenue and forecasting fourth-quarter sales of about $9.6 billion, excluding any China sales 2

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. AMD is also positioning itself for long-term growth through its multiyear partnership with OpenAI, which could generate more than $100 billion in revenue over the next several years as AMD begins supplying next-generation Instinct GPUs starting in 2026 2

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. AMD shares are up 79.04% year-to-date, demonstrating strong investor confidence despite ongoing geopolitical tensions affecting the semiconductor industry 2

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. The company's willingness to navigate complex export controls while maintaining compliance signals its commitment to balancing regulatory requirements with market opportunities in data centers and AI applications.