AMD, the American semiconductor company, has revealed that it will face significant financial losses because of US restrictions on exports to China. The company estimates a loss of $800 million related to its MI308 chips, which is about half of its net profit for 2024.
This loss represents 50% of AMD’s net profit for the entire 2024 fiscal year, which was $1.6 billion. This shows how important the Chinese market is for the company. It also highlights how US restrictions on AI chip exports can quickly change the economic outlook for major US tech companies.
A Big Blow to 2024 Financial Results
The loss comes in a global environment full of tension. Recently, the US raised tariffs on imports from China to 245%, which is already shaking up global financial markets. Meanwhile, the Trump administration has announced temporary relief for some trade partners, like removing tariffs on semiconductors and electronics from countries other than China. However, the restrictions on China remain tight, especially on AI and electronics exports, which are heavily impacted.
AMD’s situation is not unique. As the trade war continues, many other US companies could soon face similar problems. China is a major market for high-performance hardware and AI chips, and if the restrictions continue or get worse, companies like Intel, Apple, and Qualcomm might also report negative impacts on their future financial results. The American tech industry, which has always relied on global connections, may now need to rethink its strategies.
