Lisa Su Says AMD Ready to Pay 15% Fee to Resume China Shipments as Uncertainty Prevails
AMD CEO Lisa Su announced the company's readiness to pay a 15% fee to resume chip shipments to China, amid ongoing trade tensions. The statement follows a new bill introduced by U.S. senators to restrict chip exports to China. AMD has licenses for MI308 chips but faces uncertainty due to export restrictions. Wall Street rates AMD stock as a Moderate Buy, with a 32% upside potential.
At a conference held by Wired in San Francisco, Advanced Micro Devices (AMD) CEO Lisa Su said that the company has licenses to export some of its MI308 chips to China and is ready to pay a 15% tax to the U.S. government if shipments resume, Reuters reported. The statement comes as chip giants Nvidia (NVDA) and AMD continue to be impacted by uncertainty over when they will be able to resume shipments to China amid the ongoing trade tensions. On Thursday, a bipartisan group of U.S. senators introduced a new bill to restrict Nvidia, AMD, and other chipmakers from exporting advanced chips to China.
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This update worsens concerns about chip exports to China at a time when the Trump administration is weighing allowing Nvidia to sell its H200 artificial intelligence (AI) chips to China.
AMD and Peers Hit by China Export Restrictions
In August, President Donald Trump stated that his administration reached a deal with AMD and Nvidia, under which these companies can resume exporting certain chips to China by agreeing to pay a 15% tax.
However, some experts contended that such a fee could violate the U.S. Constitution's ban on taxing exports. Moreover, there have been arguments about the impact of this move amid concerns about China using advanced U.S. tech for military purposes.
Meanwhile, China is encouraging its tech giants to use domestically developed chips and reduce dependence on U.S. semiconductor companies. Amid this uncertain backdrop, U.S. chipmakers are under pressure, given that China is a key market.
It is worth noting that in its Q4 2025 guidance, AMD did not include revenue from shipments of its Instinct MI308 chips to China. However, during the conference call, CEO Su said, "We have received some licenses for MI308, so we're appreciative of the administration supporting some licenses for MI308."
Is AMD Stock a Buy?
Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 28 Buys and 10 Holds. The average AMD stock price target of $284.67 indicates 32% upside potential from current levels.
