AMD says US rule on chips to China could cost it $800 million

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Chip developer Advanced Micro Devices (AMD) on Wednesday said it expects new US licensing requirements for semiconductors exported to China to cost it as much as $800 million.

The Silicon Valley company’s earnings warning, filed with the US Securities and Exchange Commission (SEC), came a day after rival Nvidia notified regulators that it expects a $5.5 billion hit this quarter from licensing requirements on the main chip it can legally sell in China.

Shares in both companies were down by about 7 percent at the close of formal trading on Wednesday.

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AMD says US rule on chips to China could cost it $800 million


Chip developer Advanced Micro Devices (AMD) on Wednesday said it expects new US licensing requirements for semiconductors exported to China to cost it as much as $800 million.

The Silicon Valley company’s earnings warning, filed with the US Securities and Exchange Commission (SEC), came a day after rival Nvidia notified regulators that it expects a $5.5 billion hit this quarter from licensing requirements on the main chip it can legally sell in China.

Shares in both companies were down by about 7 percent at the close of formal trading on Wednesday.

The…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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