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On Thu, 17 Apr, 8:02 AM UTC
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AMD takes $800M charge on US license requirement for AI chips | TechCrunch
AMD says that the U.S. government's license control requirement for exporting AI chips to China and certain other countries may impact its earnings materially. If AMD doesn't successfully obtain a license, the company could be on the hook for roughly $800 million in inventory, purchase commitments, and related reserves charges, the company said in a filing with the SEC on Wednesday. According to AMD, the license control requirement applies to the company's MI308 products. "On April 15, 2025, [AMD] completed its initial assessment of a new license requirement implemented by the [U.S.] government for the export of certain semiconductor products to China (including Hong Kong and Macau) and D:5 countries," AMD wrote in the filing. "The [export control] applies to [AMD's] MI308 products. The company expects to apply for licenses but there is no assurance that licenses will be granted."
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AMD takes $800M haircut as US gov't cuts off China's AI GPU supply
The U.S. recently issued fresh restrictions on AI chip exports to China and other countries, further reducing the maximum allowable performance that manufacturers like Nvidia and AMD can deliver to their customers in the affected regions. Because of this, AMD reported in an SEC filing that it might suffer "charges of up to approximately $800 million in inventory, purchase commitments, and related reserves." The U.S. government has been taking steps to limit Beijing's access to America's most advanced chips to ensure the U.S. will retain its edge in artificial intelligence and prevent its East Asian rival from outpacing it. Because of this, both AMD and Nvidia have created AI GPUs specifically designed to meet the federal government's restrictions. However, the White House updated its limitations recently, making the Nvidia H20 and AMD MI308 ineligible for export without a license. "On April 15, 2025, Advanced Micro Devices, Inc. (the "Company") completed its initial assessment of a new license requirement implemented by the United States government for the export of certain semiconductor products to China (including Hong Kong and Macau) and D:5 countries...," the company said in its SEC filing. "The Export Control applies to the Company's MI308 products. The Company expects to apply for licenses but there is no assurance that licenses will be granted." AMD isn't the only one taking a substantial cut thanks to expanded export controls. Nvidia has also been hit massively, with the company expecting to make a $5.5 billion write-off with its H20 GPUs. The U.S. Department of Commerce said (via Reuters) that it's enacting these requirements to act on "the President's directive to safeguard our national and economic security." This new restriction will make it harder for Chinese companies to acquire the chips they need to train their AI models. Nevertheless, it's been proven that these bans and sanctions have largely been ineffective. We've already seen some examples of Chinese businessmen importing sanctioned Nvidia H200 GPUs, and it's widely reported that you can get these advanced chips into China by using an intermediary located in nearby countries such as Malaysia, Vietnam, and Taiwan. Singapore and Malaysia are making moves to reduce the leakage of AI chips into China, but we won't know how effective their moves will be in interdicting the massive black market demand.
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AMD warns Trump trade war with China could cost it $800M
World War Fee Turns out Nvidia's not the only chip shop caught in the crossfire of Trump's tit-for-tat trade battle with China. AMD revealed Wednesday it expects to book a charge of $800 million -- about 16 percent of the House of Zen's Instinct revenues for fiscal 2024 -- for inventory in shipments of its Instinct MI308 AI accelerators to China and other countries of concern, now blocked by newly implemented export controls. As with Nvidia, Uncle Sam could end up overriding these rules on a case by case basis, and granting export licenses for MI308 orders into China that it approves of. However, as AMD points out in a filing with the US securities watchdog, the SEC, while it plans to apply for these licenses, "there is no assurance that licenses will be granted." Until that happens, AMD is now stuck with a warehouse full of knee-capped GPUs as it waits to find out whether the Trump administration will green light its sales. While it pales in comparison to the $5.5 billion in revenues Nvidia is likely out as a result of the licensing requirements impacting its own H20 processors, it offers a glimpse into just how big AMD's Instinct business has grown since the debut of the MI300X in late 2023. While AMD is no stranger to GPUs, it's only recently that the Ryzen biz has pivoted from hardcore HPC parts, such as the Instinct MI250-series used in the United States' first exascale supercomputer at Oak Ridge National Laboratory, to parts competitive with Nvidia for lower-precision AI applications. When it launched, the MI300X boasted up to 32 percent higher performance in certain AI workloads compared to Nvidia's then-flagship the H100, along with more than double the memory and significantly greater bandwidth. As we reported at the time, AMD had aimed to produce a version of that top-end processor that was compliant with America's restrictions on powerful US-designed silicon going into China - a variant we now know as the MI308 series - but beyond that, we don't know much about it. Those export restrictions, imposed in late 2023, forced AMD to strip down the MI308's floating-point performance and interconnect bandwidth compared to the MI300X -- likely putting the China-bound version in the same ballpark as Nvidia's H20. We've asked AMD for more information on the chip and the export controls limiting its sale outside the US; we'll let you know if we hear anything back. While AMD and Nvidia's ability to do business in China will be impaired for the foreseeable future, they may be able to rework their existing designs to limbo dance under the Commerce Department's latest performance limits on China-bound silicon. It's also possible we'll see AMD reimagine the MI308 as a cut-rate inference part for nations where it's still legal, allowing them to recoup some of their investment. Nvidia did something similar with the A800. Initially designed to comply with interconnect bandwidth limits on GPUs sold in China, the part was reborn as a high-end workstation chip for machine-learning-heavy applications. ®
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AMD Sees $800 Million Charge From US Export Controls on AI Chips
Advanced Micro Devices Inc. said it expects to take a charge of as much as $800 million after the Trump administration put new restrictions on semiconductor exports to China. The company came to the conclusion after it completed an initial assessment of a new license requirement for the export of its MI308 products, it said in a filing with the US Securities and Exchange Commission. Nvidia Corp. said Tuesday in a similar filing that it will take a writedown of $5.5 billion because its H20 chip will be banned from export to China unless it secures a license.
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US issues export licensing requirements for Nvidia, AMD chips to China
April 15 (Reuters) - The U.S. Commerce Department said on Tuesday it was issuing new export licensing requirements for Nvidia's (NVDA.O), opens new tab H20, AMD's (AMD.O), opens new tab MI308 artificial intelligence chips, as well as their equivalents, to China. "The Commerce Department is committed to acting on the President's directive to safeguard our national and economic security," a Commerce spokesperson said. Nvidia said earlier on Tuesday that it would take $5.5 billion in charges after the U.S. government limited exports of its H20 artificial intelligence chip to China, a key market for one of its most popular chips. Reporting by Karen Freifeld; Editing by Himani Sarkar Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology
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AMD says US rule on chips to China could cost it $800 mn
San Francisco (AFP) - Chip developer Advanced Micro Devices (AMD) on Wednesday said it expects new US licensing requirements for semiconductors exported to China to cost it as much as $800 million. The Silicon Valley company's earnings warning, filed with the US Securities and Exchange Commission (SEC), came a day after rival Nvidia notified regulators that it expects a $5.5 billion hit this quarter from licensing requirements on the main chip it can legally sell in China. Shares in both companies were down by about 7 percent at the close of formal trading on Wednesday. The new US export control measure applies to MI308 graphics processing units (GPUs) designed for high-performance applications like gaming and artificial intelligence, AMD said. AMD said in the filing that it "expects to apply for (export) licenses but there is no assurance that licenses will be granted." The $800 million earnings blow it forecast would come from charges in "inventory, purchase commitments and related reserves," it added. Wall Street stocks overall tumbled Wednesday as the Federal Reserve chief warned of the drag from President Donald Trump's tariffs, with Nvidia sinking on costs connected to the US-China trade war. US officials last week told Nvidia it must obtain licenses to export its H20 chips to China because of concerns they may be used in supercomputers there, the Silicon Valley company said in a SEC filing. The United States had already restricted exports to China of Nvidia's most sophisticated GPUs, tailored for powering top-end artificial intelligence models. Nvidia was told the licensing requirement on H20 chips would last indefinitely, it said in the filing. Chief executive Jensen Huang has said publicly that the AI chip powerhouse will balance legal compliance and technological advances under Trump, and that nothing will stop the global advancement of artificial intelligence. "We'll continue to do that and we'll be able to do that just fine," the Taiwan-born entrepreneur told reporters late last year. Trump's predecessor Joe Biden restricted Nvidia from selling some of its top AI chips to China, which the United States sees as a strategic competitor in high tech.
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US Issues Export Licensing Requirements for Nvidia, AMD Chips to China
(Reuters) - The U.S. Commerce Department said on Tuesday it was issuing new export licensing requirements for Nvidia's H20, AMD's MI308 artificial intelligence chips, as well as their equivalents, to China. "The Commerce Department is committed to acting on the President's directive to safeguard our national and economic security," a Commerce spokesperson said. Nvidia said earlier on Tuesday that it would take $5.5 billion in charges after the U.S. government limited exports of its H20 artificial intelligence chip to China, a key market for one of its most popular chips. (Reporting by Karen Freifeld; Editing by Himani Sarkar)
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AMD says US rule on chips to China could cost it $800 million
The new US export control measure applies to MI308 graphics processing units (GPUs) designed for high-performance applications like gaming and artificial intelligence, AMD said. The company added in the filing that it "expects to apply for (export) licenses but there is no assurance that licenses will be granted."Chip developer Advanced Micro Devices (AMD) on Wednesday said it expects new US licensing requirements for semiconductors exported to China to cost it as much as $800 million. The Silicon Valley company's earnings warning, filed with the US Securities and Exchange Commission (SEC), came a day after rival Nvidia notified regulators that it expects a $5.5 billion hit this quarter from licensing requirements on the main chip it can legally sell in China. Shares in both companies were down by about 7 percent at the close of formal trading on Wednesday. The new US export control measure applies to MI308 graphics processing units (GPUs) designed for high-performance applications like gaming and artificial intelligence, AMD said. AMD said in the filing that it "expects to apply for (export) licenses but there is no assurance that licenses will be granted." The $800 million earnings blow it forecast would come from charges in "inventory, purchase commitments and related reserves," it added. Wall Street stocks overall tumbled Wednesday as the Federal Reserve chief warned of the drag from President Donald Trump's tariffs, with Nvidia sinking on costs connected to the US-China trade war. US officials last week told Nvidia it must obtain licenses to export its H20 chips to China because of concerns they may be used in supercomputers there, the Silicon Valley company said in a SEC filing. The United States had already restricted exports to China of Nvidia's most sophisticated GPUs, tailored for powering top-end artificial intelligence models. Nvidia was told the licensing requirement on H20 chips would last indefinitely, it said in the filing. Chief executive Jensen Huang has said publicly that the AI chip powerhouse will balance legal compliance and technological advances under Trump, and that nothing will stop the global advancement of artificial intelligence. "We'll continue to do that and we'll be able to do that just fine," the Taiwan-born entrepreneur told reporters late last year. Trump's predecessor Joe Biden restricted Nvidia from selling some of its top AI chips to China, which the United States sees as a strategic competitor in high tech.
[9]
AMD warns of $800 million charge from new U.S. chip export controls By Investing.com
Investing.com - Advanced Micro Devices (NASDAQ:AMD) has warned that it expects to incur a charge of up to around $800 million due to new U.S. export controls on high-end artificial intelligence chips to China. In a filing on Wednesday, AMD said it had completed an initial assessment of the updated restrictions a day earlier, noting that the rules would apply to its MI308 chips. A spokesperson for the U.S. Commerce Department said late on Tuesday that it was issuing updated licensing requirements for exports of processors like the MI308 as well as AMD-rival Nvidia (NASDAQ:NVDA)'s H20 and other similar products. The spokesperson said the move is in line with a directive from U.S. President Donald Trump to "safeguard [...] national and economic security." Nvidia earlier warned that it will incur a charge of up to $5.5 billion becuase of U.S. government limits on exports of the H20 to China, one of its key markets. The H20 is the main AI chip Nvidia is permitted to sell in China under export restrictions originially imposed by the Biden administration, as Washington has sought to close off Beijing's access to cutting-edge advancements in AI tech.
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AMD anticipates an $800 million charge due to new US export licensing requirements for its MI308 AI chips to China and other countries, highlighting the escalating tech trade tensions between the US and China.
Advanced Micro Devices (AMD) has announced that it may incur charges of up to $800 million due to new US government export licensing requirements for its MI308 artificial intelligence chips to China and other specified countries. This development comes as part of the ongoing efforts by the US administration to restrict China's access to advanced AI technologies 1.
On April 15, 2025, AMD completed its initial assessment of the new license requirement implemented by the US government. The export control applies specifically to AMD's MI308 products, which are designed for AI applications. The company plans to apply for the necessary licenses but acknowledges that there is no guarantee of approval 2.
AMD is not alone in facing the consequences of these stricter export controls. Nvidia, another major player in the AI chip market, expects to make a $5.5 billion write-off related to its H20 GPUs, which are also affected by the new regulations 3.
The US Department of Commerce stated that these measures are being enacted to "safeguard our national and economic security" as per the President's directive. The restrictions are part of a broader strategy to maintain the United States' edge in artificial intelligence and prevent potential rivals from outpacing it 4.
These new restrictions will make it more challenging for Chinese companies to acquire the chips necessary for training their AI models. However, there are concerns about the effectiveness of these bans, as reports suggest that some Chinese businesses have found ways to import sanctioned GPUs through intermediaries in nearby countries 2.
As the situation develops, both AMD and Nvidia may need to explore alternative strategies. This could include reworking existing designs to comply with the new performance limits or repurposing affected chips for other markets where export is still permitted 3.
The ongoing trade tensions between the US and China in the tech sector, particularly in AI chip technology, continue to shape the global semiconductor landscape, with significant implications for industry leaders and the broader AI ecosystem 5.
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Nvidia faces unexpected export controls on its H20 AI chips to China, resulting in a $5.5 billion charge. The move comes despite earlier reports of a potential deal with the Trump administration.
42 Sources
42 Sources
Nvidia announces a $5.5 billion charge due to new U.S. export controls on its AI chips to China, causing global chip stocks to slump and raising concerns about the impact on the company's revenue and the broader semiconductor industry.
21 Sources
21 Sources
Intel has informed Chinese clients that it will require licenses to export certain advanced AI processors, following similar restrictions faced by Nvidia. This move comes amid escalating U.S.-China trade tensions and has significant implications for the global semiconductor industry.
2 Sources
2 Sources
The Biden Administration's new AI export control policy, set to take effect in May 2025, aims to restrict the sale of advanced AI chips globally. Nvidia, a major player in the AI hardware market, strongly opposes the measure, citing potential harm to innovation and US competitiveness.
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3 Sources
The Biden administration is weighing restrictions on advanced AI chip exports to certain countries, particularly in the Middle East, potentially impacting major chipmakers like Nvidia and AMD.
21 Sources
21 Sources
