A Warmer Atmosphere in the Industry as US-China Relations Improve
MI308 Chip Sales Resume After Regulatory Approval
Mizuho Securities Raises AMD Target Price by 15%
Following Nvidia, it has been reported that AMD has also had its export restrictions on semiconductor chips to China lifted.
According to Bloomberg News, on July 15 (local time), AMD announced that the U.S. Department of Commerce is set to resume license reviews for the export of MI308 chips to China. The company plans to ship products as soon as approval is granted.
Similar to Nvidia, it is believed that the semiconductor export restrictions have been eased as the United States and China have reached a partial trade agreement.
Previously, Jensen Huang, CEO of Nvidia, stated the previous day that U.S. authorities had decided to permit the export of H20 chips to China. CEO Huang said, "We will begin selling H20 chips in the Chinese market," adding, "We are very much looking forward to shipping H20 quickly. We are very pleased, and this is very, very good news."
Like Nvidia, AMD has also complained about damages resulting from U.S. semiconductor export restrictions targeting China. In April, AMD warned that export regulations to China could result in losses of up to $800 million (approximately 1.1 trillion won).
The U.S. government explained that this measure was a reciprocal decision in response to China resuming rare earth exports. Secretary of Commerce Howard Lutnick said in an interview with CNBC, "The Biden administration allowed the purchase of such chips by China last year. Then we blocked it, and after reaching an agreement with China on (rare earth) magnets, we said we would start selling chips to China again."
Expectations in the securities market have also risen. AMD closed the previous day up 6.41% at $155.61. Mizuho Securities raised its target price for AMD by 15% after news broke of the company receiving approval to ship to China.
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