AMD to Resume AI Chip Shipments to China After U.S. Eases Export Review

AMD will resume shipments of its AI chip, MI308, to China after receiving clearance from the US Commerce Department. The move comes after the US eased export review and follows similar assurances from Washington for Nvidia. The policy shift marks a significant development in the US-China tech standoff and could ease some of the industry's biggest geopolitical headwinds. AMD shares jumped over 6% on the news.

Advanced Micro Devices (AMD) announced today that it will resume shipments of its MI308 AI chips to China after receiving clearance from the US Commerce Department. The move comes following similar assurances from Washington for Nvidia, indicating a shift in US export policies towards China. The policy change is a significant development in the ongoing US-China tech standoff and could help alleviate some of the industry's most pressing geopolitical challenges.

AMD shares jumped over 6% on the news, reflecting investor optimism about the company's ability to re-enter the lucrative Chinese market. The California-based chipmaker had previously faced licensing requirements that could potentially result in charges of up to $800 million for exporting its MI308 chips to China [2].

The shift in policy represents a reversal for the Trump administration, which had previously tightened Biden-era chip restrictions on China. The policy change comes as relations between the world's top two economies continue to improve, with the US and China both showing a willingness to ease export controls on crucial technologies [1].

Nvidia, the world's leading AI chipmaker, also announced that it hopes to resume sales of its H20 chips in China, citing assurances from the US government that export licenses will be granted. The company's CEO, Jensen Huang, met with President Donald Trump last week and is currently in Beijing attending a government-sponsored conference [1].

The US government's decision to ease export review for AMD and Nvidia reflects a broader trend of thawing relations between Washington and Beijing. The move is part of an opaque trade truce that aims to see both sides approve exports of crucial technologies. The Commerce Department, which oversees US export controls on chips and the tools used to make them, did not immediately respond to a request for comment on whether it has already issued any MI308 licenses [1].

The resumption of chip sales to China is a significant win for both AMD and Nvidia, as it opens up a key sales channel that had been previously restricted. The move could help AMD recover a substantial portion of the revenue it had previously at risk due to government restrictions [1].

References:
[1] https://finance.yahoo.com/news/nvidia-resume-h20-ai-chip-064336947.html
[2] https://seekingalpha.com/news/4467527-amd-stock-climbs-over-7-following-sale-of-mi308-chips-set-to-resume-in-china