In a significant development this May 2025, AMD CEO Lisa Su and Nvidia CEO Jensen Huang have voiced strong opposition to the US semiconductor export controls. These restrictions, limiting advanced AI chip sales to China, have created substantial challenges for American semiconductor manufacturers whilst reshaping the global technology landscape.

AMD has revealed that these export controls could reduce their 2025 revenue by £1.5 billion, primarily due to restrictions on selling MI308 GPUs and Instinct accelerators to Chinese markets. Despite these challenges, Lisa Su maintains an optimistic outlook, projecting robust double-digit growth for AMD’s Instinct GPU product line throughout fiscal year 2025, supported by established markets and a significant Oracle partnership.

Nvidia’s situation mirrors these challenges, with export restrictions specifically targeting their A800 and H800 AI chips, which were originally designed to comply with previous Chinese market regulations. The company’s financial officers have expressed concerns about permanent market opportunity losses, with potential impacts on product development timelines and customer support capabilities.

Regulatory Environment and Industry Response

The current regulatory framework presents a delicate balance between national security priorities and maintaining American technological leadership. Industry experts note that whilst controls on semiconductor manufacturing equipment effectively limit China’s advancement, comprehensive chip export bans might inadvertently accelerate Chinese domestic innovation.

The export regime, established during Biden’s administration and reinforced under Trump’s policies, has faced criticism for its broad approach. Both AMD and Nvidia executives advocate for more targeted export controls that protect security interests without compromising access to crucial international markets.

Market Implications and Future Outlook

Any potential relaxation of these export controls could significantly alter the competitive dynamics between Nvidia and AMD. Whilst Nvidia currently leads the AI chip market, AMD is actively working to strengthen its position through compliant product development and expansion in approved markets.

The implications extend beyond corporate performance, affecting global supply chains and international technology partnerships, particularly with allies like Japan and the Netherlands. The situation raises crucial questions about maintaining US technological superiority amid increasing geopolitical tensions.

As the semiconductor industry adapts to these regulatory challenges, both companies’ ability to innovate and navigate policy changes will be crucial in determining their future market positions. The evolution of these export policies will likely continue to shape the global technology landscape throughout 2025 and beyond.

Source: CNBC