As initially reported by Bloomberg, AMD’s attempt to offer adapted computing accelerators to its Chinese customers while adhering to US export restrictions has not been successful. According to US regulators, the AMD accelerators were too efficient for Chinese markets, leading the company to face potential roadblocks with its sales strategy in China.
The Instinct MI309 Difficulty
In a report published today, the source referred to certain Instinct MI309 accelerators that AMD developed in compliance with the current US restrictions. However, these models have been deemed too efficient by US regulatory bodies. Consequently, if AMD wants to export these accelerators to China, they would require export license approval from the U.S. government. Initially, it was believed AMD could sidestep this necessity by adjusting the specifications of these particular accelerators to meet specific requirements. The fully-fledged Instinct MI300 accelerators, which are intended for global clientele, would also fall under these same criteria pertaining to Chinese export restrictions.
AMD’s Dilemma and Market Future
It remains unclear whether or not AMD, considering the present circumstances and regulatory scrutiny, will apply for an export license enabling them to ship the Instinct MI309 accelerators to China. Even if unsuccessful, AMD will unlikely encounter any sales issues given the existing high demand for this kind of product. The main concern would be for the specifications of the scarce Instinct MI309 to match its asking price. This year, AMD expects to generate more than $3.5 billion in revenue from server-grade accelerator sales. Being that around a fifth of AMD’s profit comes from the Chinese market, the company has a vested interest in maintaining its position there. However, U.S. authorities may hinder them due to these export restrictions.
