US government imposes licensing requirements on AMD's MI308 AI chip exports to China, AMD records $800 million in additional costs, shares fall
AMD has announced that it has received notice from the U.S. government on April 16, 2025 that it will require an export license under new licensing requirements to export AI chips to China. The company reports that this license could result in additional costs of up to $800 million in inventory, purchase commitments and related reserves.
April 16, 2025 - 8-K: Current report | Advanced Micro Devices, Inc. (AMD)
AMD expects $800M charge due to US' license requirement for AI chips | TechCrunch
AMD takes $800M haircut as US gov't cuts off China's AI GPU supply | Tom's Hardware
https://www.tomshardware.com/tech-industry/artificial-intelligence/amd-takes-usd800m-haircut-as-us-govt-cuts-off-chinas-ai-gpu-supply
Chip stocks drop as Nvidia, AMD warn of China export control costs
https://www.cnbc.com/2025/04/16/chip-stocks-fall-as-nvidia-amd-warn-of-china-export-control-costs.html
The US government, which recognizes China's AI development as a threat to national security, has severely restricted the export of high-performance semiconductors useful for AI development to China. As a result, AMD has developed an AI chip called 'MI308' with reduced performance to a level that can circumvent the restrictions and is selling it to China, and NVIDIA has also developed and sold ' H20 ', which is reported to have recorded sales of more than 2 trillion yen in 2024.
However, in April 2025, the US government notified AMD that it would require a license to export MI308 to China. NVIDIA has also received a similar notice that it will strengthen semiconductor export controls to China and impose licensing requirements on AI chips for China.
The U.S. government demanded a license to sell NVIDIA's AI chip 'H20' to China, and NVIDIA recorded $5.5 billion in related expenses - GIGAZINE
AMD reported in a filing with the Securities and Exchange Commission on April 16, 2025 that it has 'completed its initial evaluation of new licensing requirements implemented by the U.S. government. Specifically, the company expects that these licensing requirements could result in a charge of up to $800 million to inventory, purchase commitments and related reserves.'
AMD also said, 'These licensing requirements apply to our MI308. We intend to apply for a license to comply with these export restrictions, but there can be no guarantee that a license will be granted.'
A similar notice has also been sent to Intel, and it has been reported that a license will be required for exports of the Chinese version of the AI-specialized chip ' Gaudi 3 ', which has a performance drop of about 90%. According to the overseas media Financial Times, Intel has told its Chinese clients that 'a license is required for exports to China of chips with a total DRAM bandwidth of 1400GB/s or more and an input/output (I/O) bandwidth of 1100GB/s or more.' It is said that Intel's Gaudi series, AMD's MI308, and NVIDIA's H20 far exceed these requirements.
Due to the 'reciprocal tariffs' announced on April 2, 2025 and the introduction of these strict export restrictions, the stock prices of high-tech stocks, including AMD, NVIDIA, and Intel, have plummeted across the board. On April 16, 2025, AMD's stock price fell by about 7% and NVIDIA's stock price fell by about 7%. Intel's stock price also fell by 3%. The series of stock price declines has also spread to the Nasdaq Composite Index, which is dominated by high-tech stocks, and the stock prices of companies such as Meta, Apple, Amazon, and Microsoft have also fallen.
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in Hardware, Posted by log1r_ut