AMD announced that it has obtained the necessary U.S. export licenses to restart shipments of its MI308 AI accelerator to China, a market that had been closed to the product line since the 2020 export controls were tightened. The company will comply with the Trump‑era 15 % fee on MI308 exports, a revenue‑sharing arrangement that is expected to reduce the MI308 revenue impact by roughly $800 million in 2025, according to AMD’s guidance.
The 15 % fee represents a direct cost to AMD, but the ability to resume sales offsets a previously identified $1.5 billion full‑year revenue hit that the company warned about in May 2025. The fee is a revenue‑share to the U.S. government, not a tariff, and is applied only to MI308 shipments to China. The fee is expected to compress gross margins on those sales, but AMD’s overall margin profile remains strong thanks to high‑margin data‑center and client segments.
AMD’s Q3 2025 results provide context for the MI308 revenue impact. The company reported record revenue of $9.2 billion, up 36 % year‑over‑year, with a non‑GAAP gross margin of 54 %. Data‑center revenue was $4.3 billion, up 22 % YoY, driven by strong demand for EPYC processors and Instinct MI350 GPUs. The client and gaming segments grew 73 % YoY to $4 billion, while embedded revenue fell 8 % to $857 million. AMD’s Q4 2025 guidance of $9.6 billion reflects continued momentum, and the guidance does not yet include MI308 revenue from China.
In a statement, CEO Lisa Su said, “We have received some licenses for MI308, so we’re appreciative of the administration supporting some licenses for MI308.” She added that AMD will pay the 15 % fee to resume shipping AI chips to China. CFO Jean Hu echoed the sentiment, noting that the company’s “continued investments in AI and high‑performance computing are driving significant growth and position AMD to deliver long‑term value creation.” The comments underscore AMD’s willingness to navigate regulatory hurdles while maintaining a focus on AI‑driven growth.
Market reaction to the licensing announcement was largely positive, driven by the removal of a major revenue headwind and the confirmation that AMD can monetize its high‑performance AI portfolio in China. Analysts highlighted the 15 % fee as a cost layer but noted that the fee is offset by the expected $800 million revenue impact, which is a smaller hit than the earlier $1.5 billion estimate. The announcement also alleviated concerns about the SAFE CHIPS Act’s potential to further restrict AI chip exports, giving investors confidence that AMD can continue to serve the Chinese market under the new regulatory framework.
Strategically, the licensing win positions AMD to capture a share of China’s rapidly expanding AI infrastructure market, which is projected to grow at a compound annual growth rate of 30 % over the next five years. The 15 % fee, while reducing gross margin on MI308 sales, does not materially alter AMD’s overall profitability trajectory, as the company’s high‑margin data‑center and client segments continue to expand. The move also signals to competitors that AMD is committed to maintaining a presence in China, potentially influencing the competitive dynamics in the AI accelerator space.
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