AMD says the US government’s license management requirements for exporting AI chips to China and certain other countries could have a significant impact on revenue.
If AMD does not successfully obtain the license, the company could be on the hook with approximately $800 million in stock, purchase commitments and related reserve fees, it said in a filing with the SEC on Wednesday. According to AMD, the new export rules apply to the company’s MI308 GPU.
“April 15, 2025 (AMD) completed an initial assessment of the new licensing requirements (including Hong Kong and Macau) of the export of certain semiconductor products to China and the D: the (US) government for the five countries,” AMD wrote in its submission. “(Export Control) applies to (AMD’s) MI308 products. We expect to apply for a license, but there is no guarantee that a license will be granted.”
AMD shares fell about 6% in early morning trading on Wednesday.
The newly imposed export controls in the US will affect many chip manufacturers, including AMD’s Chief Fly Bar Nvidia. In a filing Tuesday, Nvidia said it expects a $5.5 billion claim related to export control in the first quarter, which ends April 27th.
Several government officials are calling for stronger export controls for US-built GPUs. They argue that by making these chips, particularly AI companies, available to China-based companies, it threatens US control as well as US national security.
In a statement provided to Reuters yesterday, a U.S. Department of Commerce spokesman said the licensing requirements serve “the President’s directive to protect our national and economic security.”