AMD reports $390 million in MI308 AI chip sales to China in Q4, revealing the complex balance between US export controls and maintaining market presence in the world's second-largest economy.
AMD's latest earnings report reveals the company generated $390 million in revenue from MI308 AI chip sales to China in the fourth quarter, highlighting the delicate balance between US export controls and maintaining market presence in the world's second-largest economy.
According to CEO Lisa Su, these orders came "from very early in 2025" but only shipped in Q4 after receiving US government approval. This timing suggests the chips were likely ordered before the most recent tightening of export restrictions and only recently cleared for shipment.
The Export Control Tightrope
The MI308 represents AMD's attempt to navigate increasingly strict US export controls on advanced AI chips to China. While the exact specifications remain unclear, the chip is believed to be a modified version of AMD's MI300 series designed to comply with current regulations while still offering meaningful AI processing capabilities.
This situation underscores the ongoing challenge for US chipmakers: how to maintain a presence in the Chinese market without violating export controls or providing technology that could enhance China's military capabilities. The approval process for these shipments appears to be a significant bottleneck, with orders placed months before actual delivery.
Financial Context
While $390 million represents a substantial sum, it's worth noting that AMD's total data center revenue reached $5.4 billion in Q4, up 39% year-over-year. The China sales, while significant, represent a relatively small portion of AMD's overall AI chip business.
However, the strategic importance extends beyond immediate revenue. China represents a massive potential market for AI infrastructure, and companies like AMD are working to maintain relationships and market share even as they navigate export restrictions.
Broader Industry Implications
The MI308 sales come amid broader industry shifts. Nvidia, AMD's primary competitor in the AI chip space, has also been developing modified chips for the Chinese market. The success or failure of these strategies could significantly impact the competitive landscape in China's AI infrastructure market.
Additionally, the timing of these shipments—coming after a period of heightened US-China tensions over technology exports—suggests that both companies and regulators are still working to find an equilibrium that addresses national security concerns while allowing for commercial activity.
What This Means for the AI Chip Market
AMD's ability to secure approval and ship these chips demonstrates that there remains a path for US companies to serve the Chinese market, albeit with significant constraints. This could encourage continued investment in modified chip designs that can navigate the regulatory landscape.
However, the lag between order and shipment also highlights the uncertainty facing both suppliers and customers in this market. Chinese companies may be hesitant to place large orders for chips that might face extended approval processes or changing regulations.
As AI chip export controls continue to evolve, AMD's experience with the MI308 will likely serve as a case study for how other US technology companies approach the Chinese market. The balance between compliance, commercial opportunity, and national security considerations remains a complex challenge for the industry.
The $390 million in sales represents both a victory for AMD in maintaining its China presence and a reminder of the ongoing challenges in the US-China technology relationship, particularly in strategic sectors like AI infrastructure.
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