AMD Export License Denied

Export License Denied: AMD’s Specialized GPU for China Hits Roadblock

US Commerce Department's Bureau of Industry and Security (BIS) considers the chip too powerful despite its limitations.
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In the fast-paced world of technology, competition is fierce, and companies constantly seek new avenues for growth. AMD, a prominent player in the semiconductor industry, has strategically ventured into China’s burgeoning Artificial Intelligence (AI) and High-Performance Computing (HPC) market. However, recent reports suggest that the journey may not be as smooth as anticipated. This blog post delves into latest developments, particularly AMD’s GPU Export License Denied.

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The AMD Instinct MI309: A Balancing Act

The Chip in Question:

  • Artificial Intelligence (AI) focused Graphics Processing Unit (GPU) designed specifically for the Chinese market.
  • This chip is weaker than the ones AMD sells elsewhere to comply with US export restrictions.

To tap into the Chinese AI and HPC market, AMD introduced the Instinct MI300-series, a lineup aimed at competing with Nvidia’s processors. Understanding the regulatory challenges, AMD developed the Instinct MI309 specifically for the Chinese market, conforming to the latest U.S. export rules. These rules impose restrictions on the Total Processing Performance (TPP) score, limiting the AI performance of processors intended for export to China-based entities.

Read More: AMD Unveils World’s First Desktop Processor with Dedicated NPU for AI at CES 2024

AMD’s GPU Export License Denied:

The Roadblock:

  • US Commerce Department’s Bureau of Industry and Security (BIS) considers the chip too powerful despite its limitations.
  • AMD needs a license to export the chip, which the BIS has not granted.

As per the regulations implemented last fall, AMD’s Instinct MI300A, with a formidable FP8 performance of 1.96 FP8 PFLOPS, exceeded the permissible TPP score for export to China. In response, AMD made efforts to comply by slowing down the chip – adjusting clock speeds, deactivating stream processors, or removing chiplets from the package. Despite these measures, the Instinct MI309 is still subject to U.S. export limitations, requiring an export license for sale to Chinese entities.

The Context:

  • This is part of a larger trend of the US government tightening restrictions on exporting advanced technology to China.
  • The concern is that such technology could be used for military purposes by China.
  • This follows similar restrictions placed on Nvidia’s AI chips in 2023.

Read More: Meta and Microsoft Ditch Nvidia for AMD’s New AI Chip: Game Changer or Hype?

AMD’s GPU Export License Denied: Market Dynamics:

The Impact:

  • AMD’s ability to compete with Nvidia in the Chinese market for AI hardware could be hampered.
  • This may also affect AMD’s overall sales and stock price (which dipped after the news broke).
  • It adds another layer of complexity to the trade relationship between the US and China.

The fate of AMD’s China-specific Instinct MI309 product remains uncertain, hanging on the decision of whether the company will pursue the necessary license for sale. The challenge lies in finding a delicate balance between meeting regulatory requirements and providing a product that remains competitive in the Chinese market.

Unresolved Questions:

  • Whether AMD will apply for a license and the likelihood of approval.
  • How China will respond to these restrictions on their access to advanced technology.
  • The long-term impact on the global chip market.

Why have US govt. Denied the license?

The US government, specifically the Bureau of Industry and Security (BIS), denied the export license for AMD’s China-tailored GPU likely due to national security concerns.

  • Military Applications: The BIS might suspect that even a less powerful version could be used by the Chinese military for applications like simulations, cryptography, or artificial intelligence for weapon systems.
  • Dual-Use Technology: Many advanced technologies have both civilian and military applications. The BIS might be concerned that the chip, despite its limitations for commercial use, could be adapted for military purposes.
  • Strategic Advantage: The US might want to maintain a technological edge over China, especially in areas with potential military implications. By restricting access to such chips, they aim to slow down China’s technological advancement in these areas.

It’s important to note that the specific details of the denial are not always publicly available. However, these are the most likely reasons based on the broader context of US export controls on technology to China.

AMD’s GPU Export License Denied: Challenges

Pursuing the Chinese AI market is no easy feat for AMD. China’s prominent tech companies, having already stockpiled Nvidia processors, may not readily embrace AMD’s offerings. Additionally, domestic players like Huawei are actively developing their Ascend 900-series processors for AI applications, which are not subject to U.S. export control. This poses a formidable challenge for AMD, as many Chinese entities may favor locally-developed solutions over imported alternatives.

Read More: AMD CEO: MI300 to Be Fastest Selling $1 B Product in Company History


AMD’s foray into the Chinese AI and HPC market exemplifies the complex interplay between technological innovation, regulatory compliance, and market dynamics. As the company navigates these challenges, the outcome will not only shape its presence in the Chinese market but also influence the broader landscape of global semiconductor competition. The story of AMD’s Instinct MI309 underscores the intricate dance that tech companies must perform to succeed in the ever-evolving world of AI and HPC.

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