Advanced Micro Devices (AMD) announced on July 15, 2025, that it plans to resume shipments of its MI308 AI chips to China.

This decision follows the US Commerce Department’s move to restart the review of AMD’s license applications for these exports.

Shipments will begin once the necessary approvals are secured, according to the company.

Following this announcement, AMD’s stock increased by over 6%. The moves come amid ongoing trade tensions between the US and China.

Earlier this year, the US government imposed restrictions on AI chip exports to China, citing national security concerns.

These restrictions have affected revenue for chipmakers, with AMD estimating up to US$800 million in associated charges.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Export controls have become pivotal bargaining chips in US-China relations

The permission for AMD to restart MI308 shipments exemplifies how semiconductor trade has become a central negotiation point in broader geopolitical relations.

This decision comes amid what appears to be a coordinated trade agreement, with sources indicating that chip approvals are connected to concessions from China regarding rare earth exports 1.

Previous restrictions cost AMD up to $800 million and Nvidia $5.5 billion in potential revenue, making these policy reversals financially significant for American companies 2.

The Trump administration’s approach marks a departure from the Biden-era “AI diffusion policy” that created tiered restrictions, instead favoring direct country-specific negotiations that can be quickly adjusted based on trade talks 3.

This pattern of restricting and then permitting high-tech exports demonstrates how semiconductor access has evolved into a key diplomatic lever to influence broader economic relations.

2️⃣ US export restrictions have accelerated China’s push for technological self-sufficiency

The temporary ban on advanced AI chips has intensified China’s determination to develop domestic semiconductor capabilities, potentially undermining the long-term effectiveness of US export controls.