AMD expects $800M charge due to US’s license requirement for AI chips, citing new export controls imposed by the U.S. government on AI hardware shipments to China and other restricted regions.
In a regulatory filing submitted to the SEC on Wednesday, AMD revealed that the updated U.S. export restrictions could have a significant financial impact if the company fails to obtain proper licenses. The charges, which could total up to $800 million, relate to inventory, purchase commitments, and reserve costs for AMD’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,” the company 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.”
Following the disclosure, AMD’s stock dropped by roughly 6% during early trading hours on Wednesday.
These new export restrictions are part of a broader U.S. initiative to limit advanced chip technologies from reaching geopolitical adversaries. Similar controls have hit AMD’s main competitor, Nvidia, which reported in a separate filing that it anticipates up to $5.5 billion in charges tied to the same regulations during its current fiscal quarter ending April 27.
Government officials in the U.S. have argued that tighter export controls are necessary to protect national security and maintain leadership in AI development. Specifically, there’s concern that advanced GPUs could bolster China’s artificial intelligence capabilities and weaken U.S. strategic advantages.
A U.S. Commerce Department spokesperson reiterated this stance in a statement to Reuters, saying the license requirement follows “the President’s directive to safeguard our national and economic security.”
As AMD navigates the uncertain approval process for export licenses, the potential $800 million hit underscores the high financial stakes tied to evolving U.S.-China tech policy—and the critical role AI chips now play on the global stage.
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