AMD says US rule on chips to China could cost it US$800 million
The new US export control measure applies to MI308 graphics processing units (GPUs) designed for high-performance applications
Chip developer Advanced Micro Devices (AMD) on Wednesday said it expects new US licensing requirements for semiconductors exported to China to cost it as much as US$800 million.
The Silicon Valley company’s earnings warning, filed with the US Securities and Exchange Commission (SEC), came a day after rival Nvidia notified regulators that it expects a US$5.5 billion hit this quarter from licensing requirements on the main chip it can legally sell in China.
Shares in both companies were down by about 7 per cent at the close of formal trading on Wednesday.
The new US export control measure applies to MI308 graphics processing units (GPUs) designed for high-performance applications like gaming and artificial intelligence, AMD said.
AMD said in the filing that it “expects to apply for (export) licenses but there is no assurance that licenses will be granted”.
The US$800 million earnings blow it forecast would come from charges in “inventory, purchase commitments and related reserves”, it added.