AMD says US rule on chips to China could cost it $800 mn

Silicon Valley spot shaper Advanced Micro Devices (AMD) told regulators that the US mightiness not assistance recently required licenses for chips exported to China, hitting the company's bottommost line. Photo: PAU BARRENA / AFP
Source: AFP

Chip developer Advanced Micro Devices (AMD) connected Wednesday said it expects caller US licensing requirements for semiconductors exported to China to outgo it arsenic overmuch arsenic $800 million.

The Silicon Valley company's net warning, filed with the US Securities and Exchange Commission (SEC), came a time aft rival Nvidia notified regulators that it expects a $5.5 cardinal deed this 4th from licensing requirements connected the main spot it can legally merchantability successful China.

Shares successful some companies were down by astir 7 percent astatine the adjacent of ceremonial trading connected Wednesday.

The caller US export power measurement applies to MI308 graphics processing units (GPUs) designed for high-performance applications similar gaming and artificial intelligence, AMD said.

AMD said successful the filing that it "expects to use for (export) licenses but determination is nary assurance that licenses volition beryllium granted."

The $800 cardinal net stroke it forecast would travel from charges successful "inventory, acquisition commitments and related reserves," it added.

Wall Street stocks wide tumbled Wednesday arsenic the Federal Reserve main warned of the resistance from President Donald Trump's tariffs, with Nvidia sinking connected costs connected to the US-China commercialized war.

US officials past week told Nvidia it indispensable get licenses to export its H20 chips to China due to the fact that of concerns they whitethorn beryllium utilized successful supercomputers there, the Silicon Valley institution said successful a SEC filing.

The United States had already restricted exports to China of Nvidia's astir blase GPUs, tailored for powering top-end artificial quality models.

Nvidia was told the licensing request connected H20 chips would past indefinitely, it said successful the filing.

Chief enforcement Jensen Huang has said publically that the AI spot powerhouse volition equilibrium ineligible compliance and technological advances nether Trump, and that thing volition halt the planetary advancement of artificial intelligence.

"We'll proceed to bash that and we'll beryllium capable to bash that conscionable fine," the Taiwan-born entrepreneur told reporters precocious past year.

Trump's predecessor Joe Biden restricted Nvidia from selling immoderate of its apical AI chips to China, which the United States sees arsenic a strategical rival successful precocious tech.

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Source: AFP