Advanced Micro Devices

(AMD) has announced that it will soon resume shipping its MI308 artificial intelligence (AI) chips to China. The news comes hours after fellow chipmaker Nvidia said that it will resume the deliveries of its H20 AI chips to China “soon”. AMD stated that the US Commerce Department intends to restart reviewing its license applications for sending these products to the world’s second-largest economy. While Nvidia says it has been “assured” by the government that licenses to sell its AI chips will be granted.The company plans to begin shipments as soon as those approvals are granted, AMD said.“We applaud the progress made by the Trump administration in advancing trade negotiations and its commitment to US AI leadership,” CNBC quoted an AMD spokesperson as saying.

This development comes amid tensions between the US and China, following a heated trade war initiated by US President Donald Trump's tariff policies. Both AMD and its competitor Nvidia have felt the impact of US export restrictions.

While AMD had previously indicated it would incur up to $800 million in charges due to these controls, Nvidia warned of a $5.5 billion hit from restrictions on its H20 processors. Notably, both the H20 and MI308 chips were specifically developed for the Chinese market in response to these US export control rules.Recently, while replying to fears that China will use US-made chips for military purposes, Nvidia CEO Jensen Huang asserted that the Chinese military “don't need Nvidia's chips, certainly, or American tech stacks in order to build their military,”because “they simply can't rely on it”. He suggested that China knows that US technology “could be limited at any time; not to mention, there's plenty of computing capacity in China already.”Nvidia has also announced a new RTX Pro GPU for China.