The Department of Commerce updated the license review policy for exports of some semiconductors to China and Macau, changing it from a presumption of denial to a case-by-case review.
- The rule would be applicable to Nvidia’s H200 and equivalent chips, as well as certain less advanced chips, including Advanced Micro Devices Inc.’s AMD MI325X.
- The policy, however, limits the aggregate shipments of semiconductor products to China or Macau to 50% of the total products made for the United States.
- Sellers are also required to have rigorous Know Your Customer (KYC) procedures to screen buyers.
The U.S. Department of Commerce on Tuesday published a regulation updating the license review policy for exports of some semiconductors to China and Macau, changing it from a presumption of denial to a case-by-case review.
The rule would be applicable to Nvidia’s H200 and equivalent chips, as well as certain less advanced chips, including Advanced Micro Devices Inc.’s AMD MI325X, the department said.
The change would ease an earlier U.S. stance that denied any request for permission to sell or export to China.
Policy Details
The stipulations under the rule include commercial availability of the semiconductors in the U.S., sufficient supply of the product in the country, proof that the production of the product for exports to China will not impact domestic capacity, the buyer has sufficient security procedures, and the exported item undergoes independent, third-party testing in the U.S. to verify its performance specifications.
In addition, the policy limits the aggregate shipments of semiconductor products to China or Macau to 50% of the total products made for the United States. Sellers are also required to have rigorous Know Your Customer (KYC) procedures to screen buyers.
China Vs The U.S.
The U.S. and China are vying for dominance in the global AI industry. Last month, President Donald Trump reversed an earlier decision to ban semiconductor exports to China by legally allowing Nvidia to export its H200 chips to China.
However, Nvidia more-advanced Blackwell generation chips are still banned from Chinese exports. The company is currently working to roll out its next generation of Vera Rubin chips that are touted to be five times faster than Blackwell and are expected to go on sale in the second half of the year.
Meanwhile, Advanced Micro Devices, has been seeking clearance to sell its MI325X chips in China.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around NVDA shares was in the ‘bullish’ territory amid ‘normal’ message volumes at the time of writing.
Meanwhile, retail sentiment around AMD shares was in the ‘extremely bullish’ territory amid ‘high’ message volumes.
Shares of NVDA are up nearly 40% in the past year, while AMD shares have gained over 88% in the same time period.
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