First Nvidia, now AMD: Trump trade turmoil threatens $800M in China chip sales
AMD has sounded the alarm that the ongoing trade tensions with China could lead to an $800 million hit to its sales, particularly affecting its AI accelerator shipments due to new export controls. This news echoes similar concerns raised recently by Nvidia, indicating the escalating impact of US-China trade relations on the semiconductor industry.
Key Points
- AMD anticipates an $800 million charge impacting its Instinct MI308 AI accelerator revenues due to blocked shipments to China.
- This figure represents 16% of the AMD’s total Instinct revenues for fiscal 2024.
- Export controls from the US government are causing similar challenges for AMD as faced by Nvidia.
- The AMD MI308 series aims to comply with US export restrictions, limiting its performance compared to its predecessor, the MI300X.
- Potential exists for AMD to seek export licences for certain shipments, but approvals are not guaranteed.
Why should I read this?
If you’re into the tech world or even just curious about how global politics can shake up the semiconductor landscape, this piece is a must-read! AMD’s trade-related struggles provide insight into the very real financial stakes at play for major tech players. Plus, it’s always handy to stay ahead on these developments, especially with ongoing and rampant discussions around AI technologies and their market impacts.