Introduction
Advanced Micro Devices (AMD) is the latest casualty in the escalating U.S.-China tech war, as new American export restrictions force the chipmaker to write down up to $800 million.
The charges stem from blocked shipments of AMD’s high-end MI308 AI processors to China—a country that generated nearly a quarter of its sales in 2024.
With tensions rising and licensing uncertainty looming, AMD joins Nvidia in absorbing major losses.
The U.S. government’s tightening grip on semiconductor exports now risks disrupting global chip supply chains and eroding revenues for some of the industry’s biggest players.
What You Need to Know
AMD faces up to $800 million in charges due to U.S. restrictions on shipping AI chips to China.
MI308 chips are blocked, similar to Nvidia’s H20 processors, under new U.S. Commerce rules.
China contributed 24% of AMD’s total 2024 revenue—roughly $6.23 billion.
Export licenses required, but no U.S. GPU export licenses to China have ever been granted.
AMD and Nvidia shares fell over 5%, showing investor concerns over further policy shocks.
What Triggered the $800 Million Charge?
On April 16, 2025, AMD confirmed in a regulatory filing that it expects charges between $600–800 million linked to halted shipments, inventory write-downs, and canceled supply contracts.
This came after the U.S. Commerce Department expanded its export controls to include AMD’s MI308 chips and Nvidia’s H20 AI processors.
The U.S. cited national security and AI militarization concerns, saying the targeted chips offer performance levels potentially usable in Chinese military or surveillance systems.
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Why China Is Critical for AMD
China is not just another overseas market for AMD—it’s a cornerstone of its revenue model. In 2024, AMD earned $6.23 billion from China, making up 24% of its total revenue.
These AI chips are custom-built for hyperscale data centers, AI model training, and cloud services.
AMD designed the MI308 series to compete directly with Nvidia’s H100 and H20 chips. Blocking shipments to China not only hurts current sales but also delays AMD’s broader AI roadmap.
Export Licenses? Don’t Count on It
AMD says it will apply for licenses, but analysts are skeptical. According to Jefferies, the U.S. has never granted a GPU export license for China under the current tech regime.
“There is no assurance that licenses will be granted,” AMD wrote in its latest disclosure, a line that signals deep uncertainty ahead.
Stock Market Fallout and Industry Impact
Both AMD and Nvidia stocks dropped over 5% following the news. The announcement also dragged down the Philadelphia Semiconductor Index, reflecting wider investor fear.
| Company | Chip Affected | Charge Amount | China Revenue (2024) | Share Drop (%) |
|---|---|---|---|---|
| AMD | MI308 | $800 million | $6.23 billion (24% of total) | 5.4% |
| Nvidia | H20 | $5.5 billion | ~$15 billion (22% of total) | 5.7% |
These restrictions arrive as the global semiconductor industry struggles with geopolitical headwinds, inventory gluts, and AI investment cycles. Even as companies pour billions into R&D and fabs, access to key international markets remains hostage to policy shifts.
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What’s Next for AMD?
AMD’s future in China depends on Washington’s export review process, which is unlikely to change soon.
The company must now find alternative markets or delay shipments until U.S. authorities clarify their position.
Meanwhile, China is accelerating development of domestic AI chips, creating further risk for U.S. companies that may lose long-term access to this lucrative market.
Conclusion: High Stakes in the Chip War
The U.S.-China chip conflict is no longer just policy talk—it’s impacting real numbers. AMD’s $800 million charge highlights how export bans now directly affect revenue, inventory, and long-term planning.
With no certainty on export licenses and rising trade barriers, chipmakers like AMD must now factor geopolitics into every profit projection.
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