SemiMedia SemiMedia
  • Breaking News
  • MarketWatch
  • Distribution
  • Manufacturer
  • Video
  • About us
Home › MarketWatch › AMD warns of $1.5 billion hit in 2025 from U.S. chip export curbs to China
  • 0

AMD warns of $1.5 billion hit in 2025 from U.S. chip export curbs to China

SemiMediaEdit
May 8, 2025

May 8, 2025 /SemiMedia/ — AMD said on Tuesday it expects a $1.5 billion revenue loss in 2025 due to tighter U.S. export restrictions on advanced chips to China, underscoring the growing impact of trade controls on the semiconductor sector.

The rules, updated in April, require chipmakers to obtain licenses to ship high-performance AI processors to China — a market that contributes about a quarter of AMD’s annual revenue.

CEO Lisa Su said most of the financial impact will hit in the second and third quarters of 2024, but stressed that AI-related data center sales are still on track to grow by strong double digits this year.

“This is a headwind, but it’s manageable given the momentum across our broader portfolio,” Su said on a post-earnings call.

AMD had already flagged $800 million in charges tied to the new export curbs. The company now expects a full-year adjusted gross margin of 43%, down 11 percentage points from levels excluding those charges.

Despite the restrictions, AMD forecast second-quarter revenue of around $7.4 billion, plus or minus $300 million — ahead of Wall Street expectations. Analysts said customers are likely pulling forward purchases ahead of stricter enforcement.

CFO Jean Hu said the $1.5 billion hit stems from the latest round of U.S. controls, which further limit shipments of AI chips to China.

Nvidia, which also faces the same licensing requirements, recently warned of a potential $5.5 billion revenue impact from the tightened rules.

Related

AI processors AMD data center China export restrictions chip supply chain electronic components news Electronic components supplier Electronic parts supplier semiconductor revenue US trade policy
TSMC seeks 30% wafer price cuts from suppliers amid NT dollar surge
Previous
NXP launches advanced radar processors to boost L2+ to L4 autonomous driving systems
Next

All Comments (0)

Back
No Comment.

Top Post

Fire broke out at AKM factory in Japan
Qualcomm ranked first in the world's top ten IC design companies
Mouser Electronics expands to the Philippines with local customer service center
Analyze the key factors and prospects of electronic components shortage from the perspective of wafer industry
What is the root cause of the decline of the Japanese semiconductor industry?
ST releases price increase notice

Subscribe SemiMedia

Please check your E-mail to confirm the subscribtion.

Related posts

Infineon unveils 650 V CoolGaN switch to streamline power conversion across EV, solar, and data center systems

Infineon unveils 650 V CoolGaN switch to streamline power conversion across EV, solar, and data center systems

May 13, 2025
0
Malaysia becomes critical node in global AI GPU supply chain

Malaysia becomes critical node in global AI GPU supply chain

May 13, 2025
0
TSMC's U.S. fab capacity fully booked amid strong demand from major clients

TSMC's U.S. fab capacity fully booked amid strong demand from major clients

May 13, 2025
0
GlobalWafers to launch Texas fab, first 12-inch silicon wafer plant in US

GlobalWafers to launch Texas fab, first 12-inch silicon wafer plant in US

May 12, 2025
0
Copyright © 2017-2025 SemiMedia. Designed by nicetheme.
  • Please set up your first menu at [Admin -> Appearance -> Menus]
  • electronic components news
  • Electronic components supplier
  • Electronic parts supplier
  • Infineon
  • Electronic component news
  • Renesas
  • Vishay
  • STMicroelectronics
  • NXP
  • TDK

SemiMediaEdit

Administrator