Amd nasdaq Amd Faces Setback As Ai Chip for Chinese Market Falls Short of Regulatory Requirements

AMD (NASDAQ: AMD) Faces Setback as AI Chip for Chinese Market Falls Short of Regulatory Requirements

Advanced Micro Devices (NASDAQ: AMD) stock took a minor hit after the U.S. Commerce Department denied the sale of its custom AI processor to China without a license.

Advanced Micro Devices (AMD) faced a setback as its efforts to create a Chinese-market-specific artificial intelligence chip, intended for sale without a Commerce Department license, reportedly fell short.

The chipmaker was seeking approval from the Commerce Department to market its AI processor to customers in China. As per Bloomberg News, this processor functions at a reduced performance level compared to the offerings of AMD in other markets.

As outlined in the report, U.S. officials have conveyed to AMD that the sale of chips still mandates a license from the Commerce Bureau of Industry and Security.

The United States has actively imposed restrictions on China, limiting the sales of the country’s most advanced semiconductor technologies. These restrictions are in place due to national security concerns.

The Biden administration, in 2022, introduced a comprehensive set of restrictions on the exports of high-end semiconductors to China. The aim was to limit China’s access to military-relevant technologies, with these restrictions later being intensified.

Nvidia (NASDAQ: NVDA), among other firms, is marketing slower versions of its top-tier AI chips. This move aligns with restrictions to limit China’s access to advanced semiconductor technologies.

Advanced Micro Devices (NASDAQ: AMD) Stock Reaction

AMD stock dropped marginally by 0.11% to close at $205.13 on Tuesday. The traders had exchanged hands with 64,979,973 (64.97 million) shares compared to the average daily trading volume of 75.78 million.