AMD Confirms Resumed MI308 Chip Exports to China After Nvidia H20, Awaiting Review

CNBC AI News, July 16 – Just hours after Nvidia announced that the U.S. government had approved the sale of its H20 chip in China, Advanced Micro Devices (AMD) confirmed it will resume exporting its MI308 chip to the Chinese market.

As reported by multiple outlets, an AMD spokesperson revealed on July 15 that the U.S. Department of Commerce informed the company that its license application for the MI308 product would proceed to the review process.

This decision mirrors a similar one made by the U.S. government regarding Nvidia’s H20 chip. The MI308 is an AI accelerator tailored by AMD specifically for the Chinese market.

Both AMD and Nvidia have been significantly impacted by AI hardware export restrictions imposed by the Biden and Trump administrations in recent years.

The Biden administration introduced comprehensive and stringent AI diffusion rules, aiming to exert strict control over related technologies.

While the Trump administration rolled back some AI diffusion rules, it maintained restrictions on key exports to China, including chips like the H20 and MI308.

These restrictions have taken a toll on AMD’s bottom line. AMD has publicly acknowledged that export limitations could result in approximately $800 million in losses related to inventory management, fulfillment of purchase commitments, and associated reserves.

While this figure is smaller than the $5.5 billion asset write-down that Nvidia faced due to similar restrictions, it still represents a notable impact on AMD’s financial performance.

Therefore, the U.S. government’s policy shift in allowing MI308 chip exports to China is a significant boon for AMD.

Following the announcement, AMD’s stock price surged in pre-market trading, climbing nearly 5%.

Notably, allowing these products to return to the Chinese market represents something of a policy reversal, particularly for the Trump administration.

Just weeks prior, the Trump administration had maintained a tough stance, asserting that policies restricting chip sales to China were not up for discussion or adjustment.