AMD says that the U.S. government’s license control requirement for exporting AI chips to China and certain other countries may have a material impact on its earnings.
If AMD doesn’t successfully obtain a license, the company could be on the hook for roughly $800 million in inventory, purchase commitments, and related reserves charges, it said in a filing with the SEC on Wednesday. According to AMD, the new export rules apply to the company’s MI308 GPUs.
“On April 15, 2025, [AMD] completed its initial assessment of a new license requirement implemented by the [U.S.] government for the export of certain semiconductor products to China (including Hong Kong and Macau) and D:5 countries,” AMD wrote in the filing. “The [export control] applies to [AMD’s] MI308 products. The company expects to apply for licenses but there is no assurance that licenses will be granted.”
AMD’s shares were down around 6% in early morning trading on Wednesday.
The U.S.’s newly imposed export controls impact a number of chipmakers, including AMD’s chief rival Nvidia. In a filing on Tuesday, Nvidia said it anticipates charges of $5.5 billion related to the export controls in the first quarter ending April 27.
Multiple government officials have been calling for stronger export controls on U.S.-built GPUs. Allowing China-based companies to obtain these chips, in particular AI companies, would threaten the U.S.’s dominance in AI as well as its national security, they argue.
In a statement provided to Reuters yesterday, a U.S. Commerce Department spokesperson said that the license requirement is in service of “the President’s directive to safeguard our national and economic security.”