AMD Warns US Export Rules on China Could Cost Up to USD 800 Million
- Apr 18, 2025
- 2 min read
Advanced Micro Devices Inc. (AMD) said new US export restrictions on semiconductors to China could cost the company as much as USD 800 million.
The chipmaker disclosed the potential financial impact in a filing with the US Securities and Exchange Commission on Wednesday. The warning follows a similar disclosure by rival Nvidia, which expects a USD 5.5 billion hit this quarter due to the same licensing requirements.
Shares of both AMD and Nvidia fell about 7% at the close of trading on Wednesday.
The new US export controls target AMD’s MI308 graphics processing units (GPUs), which are used in high-performance applications such as gaming and artificial intelligence.
AMD said it plans to apply for export licences but noted there is no guarantee they will be granted. The projected USD 800 million loss stems from charges related to inventory, purchase commitments, and associated reserves.
The restrictions are part of broader US efforts to limit China’s access to advanced semiconductor technology.
Last week, US officials informed Nvidia that it must obtain licences to export its H20 chips to China, citing concerns over their potential use in supercomputers. Nvidia said the licensing requirement would remain in place indefinitely.
The US had already barred Nvidia from selling its most advanced GPUs to China, which are designed to support cutting-edge artificial intelligence models.
Nvidia Chief Executive Jensen Huang has said the company will continue to comply with legal requirements while advancing AI technology.
The export controls come amid ongoing trade tensions between the US and China, with the Biden administration maintaining restrictions first introduced under former President Donald Trump.
AMD expects up to USD 800 million in losses from new US chip export rules
Nvidia forecasts a USD 5.5 billion impact from similar restrictions
Both companies’ shares dropped about 7% on Wednesday
Source: SCMP
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