Commerce Department Enforces License for AMD MI350x Exports to China-Based Entities
AMD•The U.S. Commerce Department will now require export licenses for high-end processors like AMD’s MI350x when destined for entities ultimately based in China, closing a year-old compliance gap. This enforcement could halt hundreds of thousands of MI350x units shipped through foreign subsidiaries to Chinese AI developers.
1. License Enforcement Update
The U.S. Commerce Department stated that export licenses are now mandatory for advanced processors including AMD’s MI350x when the end customer is ultimately headquartered in China, regardless of their foreign subsidiary locations.
2. Closure of Year-Old Loophole
This policy change fills a gap left since May 2025, during which an estimated hundreds of thousands of high-end AI chips may have been shipped through third-country subsidiaries to Chinese AI firms without licenses.
3. Implications for AMD Revenue
Analysts warn that requiring licenses could delay or block substantial MI350x orders, potentially reducing AMD’s revenue from its second-largest market and increasing compliance costs.
4. China’s AI Chip Strategies
The move comes as Chinese companies accelerate development of domestic AI processors, reducing reliance on foreign chips and reshaping supply chains for AMD in the region.
