AMD estimates $800M charge on US license requirement for AI chips

AMD says that the U.S. government’s license control requirement for exporting AI chips to China and certain other countries may impact its earnings materially. 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 stock was down around 7% in pre-market trading. The U.S.’s newly imposed export controls impact a number of chipmakers, incl ... Read full article.