Advanced Micro Devices (AMD) is set to resume shipments of its MI308 artificial intelligence processors to China after receiving word from the US Commerce Department that it will review export license applications for these high-profile chips.
This green light follows a parallel move for Nvidia, which announced its H20 AI chips would soon be shipped to China after receiving similar regulatory assurances. Both companies hope this marks an end to months of crippling losses in the world’s second-largest AI hardware market.
Will the US policy shift unlock a new chapter for US AI exports?
AMD and Nvidia had faced harsh export restrictions beginning in early 2024, when the US government tightened controls on advanced chips destined for China. These curbs aimed to limit access to sophisticated AI hardware over national security concerns but also sparked outcry over lost innovation and economic opportunities.
Under the newly relaxed framework, the Commerce Department will review individual export license applications, giving AMD hope that the MI308 can once again reach Chinese customers. AMD’s spokesperson praised progress in recent trade negotiations and the administration’s support of US AI industry leadership.
Did you know?
AMD’s MI308 chips were specifically designed to comply with evolving US export controls, a rare case where custom hardware was engineered for regulatory as well as technical targets.
AMD and Nvidia await license approvals to restore Chinese sales
The impact for AMD is dramatic: The company previously forecasted up to $800 million in lost revenue for 2025 after the chip ban took effect, underscoring China’s massive role in AMD’s global sales. CEO Lisa Su expressed confidence that the company's growing demand for AI chips and its leadership product portfolio will offset the current headwinds.
Nvidia has faced similar pain, warning investors of a $5.5 billion hit due to restrictions on its H20 chips. Both companies tailored their latest AI processors to comply with evolving export rules, but their China-specific designs were swept up in policy uncertainty earlier in the year.
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Tech sector eyes fresh momentum as export headwinds ease
With license reviews resuming for both AMD and Nvidia, the broader tech sector sees a potential reset in US-China AI trade. Analysts note this is not just about chip shipments but about setting the tone for future tech diplomacy and economic competition between global superpowers.
The timing is critical. Policy reversals have come as US chipmakers have faced mounting financial pressure and as Chinese firms rapidly advanced their domestic hardware capabilities. Restored exports could slow that shift while breathing new life and revenue back into US suppliers.
All eyes now turn to whether US authorities, including the Commerce Department, will approve the required licenses quickly. Approval would mark not just a business win for AMD and Nvidia, but a sign that dialogue and practical cooperation are making a comeback after years of tension.
The coming weeks will prove crucial for AI hardware and for bilateral trade, as chipmakers, investors, and policymakers wait for the next regulatory decisions in this fast-moving saga.
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