AMD to resume MI308 AI chip exports to China

Advanced Micro Devices (AMD) announced on Tuesday that it will soon recommence exports of its MI308 artificial intelligence chips to China, causing a notable 7% rise in its stock prices. The announcement follows the U.S. Commerce Department's decision to resume the evaluation of license applications for shipping these products to the world's second-largest economy. AMD indicated that it plans to begin shipments immediately after receiving the necessary approvals. An AMD spokesperson expressed appreciation for the progress made in trade negotiations, highlighting the administration's commitment to maintaining U.S. leadership in AI technology. This development arrives against a backdrop of escalating tensions between the U.S. and China, a situation exacerbated by the trade war initiated by former President Donald Trump. Recently, Nvidia CEO Jensen Huang met with Trump, as the semiconductor industry called for a relaxation of export controls. Nvidia also announced plans to restart its shipments to China soon. Chip manufacturers have previously sounded alarms over potential revenue losses due to restrictions related to China. In April, AMD projected it could face charges of up to $800 million, while Nvidia estimated a $5.5 billion impact on its revenue from restrictions on its H20 processors. During a May earnings call, Huang mentioned that Nvidia missed out on $2.5 billion in revenue linked to these chips. Both the MI308 and H20 chips were specifically developed for the Chinese market, influenced by U.S. export control regulations. Earlier this year, the Trump administration tightened controls on AI chip exports to China, citing national security concerns. It also repealed the 'AI diffusion rule' established under President Joe Biden, which had introduced varying levels of shipment restrictions. The administration has promised to implement new, simplified rules for chip exports but has yet to unveil a detailed policy.