The U.S. chip export restrictions to China cost AMD $800 million.

AMD said today that it expects to be charged up to $800 million in the wake of the Trump administration’s most recent crackdown on advanced chip exports to China. The business acknowledged that its MI308 product line is impacted by these new regulations. The U.S. Commerce Department announced Tuesday that it was implementing new licensing regulations that will affect a number of high-performance chips, such as AMD’s MI308 and NVIDIA’s H20. China is AMD’s second-largest market in 2024, accounting for roughly 24% of the company’s total sales of $6.23 billion, so this regulatory action comes at a considerable cost.

According to AMD’s regulatory filing, the business is facing $800 million in charges because of needed reserves, purchasing commitments, and inventory problems. The company “expects to apply for licenses but there is no assurance that licenses will be granted,” . When we take into account what analysts at Jefferies said on Tuesday—that the United States has never reached an agreement on licenses for the sales of graphics processing units to China—this uncertainty increases. This information follows NVIDIA’s declaration that it would incur $5.5 billion in penalties due to the same export regulations. Consequently, the stocks of AMD and NVIDIA were declining by over 5%.