^{Source: South China Morning Post}

AMD Hit by New U.S. Chip Export Curbs — Up to $800M at Stake

Shares of semiconductor giant Advanced Micro Devices (AMD) fell over 5% on Wednesday, after the company warned that recently imposed U.S. export restrictions on its advanced chips could lead to financial losses of up to $800 million.

The losses stem from restrictions on the export of AMD’s MI300 series accelerators, specifically the MI308 chips, which are designed for artificial intelligence (AI) and high-performance computing (HPC) workloads. These chips were expected to be key players in AMD’s growth, particularly in China and other high-demand international markets.

What’s Behind the $800M Blow?

In a regulatory filing with the U.S. Securities and Exchange Commission (SEC), AMD noted that it would seek export licenses to continue selling the restricted products. However, the company was blunt about the risk: “There is no assurance that licenses will be granted.”

The company clarified that the potential $800 million hit could impact:

• Existing inventory
• Purchase commitments
• Related reserves

These numbers reflect the ripple effects of the Biden administration’s tightened rules on chip exports to countries like China that the U.S. government considers a strategic competitor in advanced technologies.

AI Ambitions Caught in the Crossfire

AMD’s affected chips—particularly the Instinct MI300X—have been promoted as tailor-made for the growing AI sector, boasting high memory bandwidth and performance per watt. The chips were poised to challenge Nvidia's dominance in the AI accelerator market.

AMD recently reported record revenue of $25.8 billion in fiscal 2024, a 14% year-over-year increase, driven largely by its data center and AI chip segments. However, these gains are now at risk, as China remains a major buyer of AI and HPC technologies.

Nvidia Also Faces the Heat

AMD isn’t alone in dealing with these restrictions. Competitor Nvidia, which currently dominates the AI chip landscape, disclosed a potential quarterly charge of $5.5 billion due to halted shipments of its H20 graphics processing units (GPUs).

According to Nvidia’s latest annual report, China is the company’s fourth-largest market, trailing only the U.S., Singapore, and Taiwan. Over 50% of its fiscal year 2024 revenue came from the U.S., but China still represents a substantial slice of its international revenue pipeline.

Industry-Wide Implications

These new export rules are part of a broader U.S. strategy aimed at limiting China’s access to cutting-edge semiconductor technologies, especially those used in AI, surveillance, and military applications. The restrictions affect not only chipmakers like AMD and Nvidia, but also their customers, supply chain partners, and data center infrastructure providers globally.

Analysts warn this could restructure global chip supply chains, as companies are forced to rethink their manufacturing and distribution strategies. Moreover, the regulatory uncertainty could slow down investment in next-gen AI hardware, particularly in regions affected by the export bans.

Outlook: A Cloud Over Future Growth

Although AMD still maintains a strong foothold in other global markets, including the U.S. and Europe, the China export ban casts a long shadow. It not only threatens short-term revenue but also complicates AMD's long-term ambitions in AI and supercomputing.

CEO Dr. Lisa Su has frequently emphasized the company’s commitment to leading the AI revolution. Yet, this geopolitical speed bump could delay AMD’s trajectory and give rivals an edge—especially those with less exposure to U.S. regulation or more diversified manufacturing bases.

As tech giants navigate an increasingly fragmented global tech landscape, the real question remains: Can innovation stay ahead of politics?

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