AMD CEO Lisa Su Announces Company’s Readiness to Pay 15% Tax on China Chip Exports - Strategic Move or Costly Compliance?

AMD just signaled it's playing the long game in the world's most critical semiconductor market.

### The 15% Pivot

Lisa Su's declaration isn't about surrender—it's about strategy. While other tech giants scramble to reconfigure supply chains, AMD is opting for a calculated, albeit expensive, path to maintain its foothold. Paying that 15% premium keeps the doors open, the fabs humming, and the revenue flowing from a market too big to ignore.

### The Chipmaker's Calculus

This isn't a simple tax bill. It's a direct investment in market access. The move reveals a stark prioritization: near-term margin pressure for long-term strategic positioning. In the high-stakes poker game of global tech, AMD is calling the bet, betting its advanced architectures and manufacturing prowess can outpace the financial drag of the tariff.

### A New Era of Tech Realpolitik

Forget free trade dogma. The rules have been rewritten. Tech leadership now demands navigating a labyrinth of geopolitical tariffs and export controls. AMD's readiness to pay is a masterclass in pragmatic corporate statemanship—acknowledging the new reality without ceding the competitive battlefield.

### The Bottom Line for Investors

Short-term, the math is simple: a 15% haircut on China-bound chip revenue. Long-term, the equation gets fuzzy. Does securing the China corridor justify the toll? Or is this the first admission price in a series of escalating protectionist fees? Only the next few earnings calls will tell if this is a brilliant hedge or just another cost of doing business in a fragmented world—a world where even silicon has to pay its geopolitical dues. After all, on Wall Street, a 'strategic investment' is often just a costly mistake that hasn't blown up yet.

TLDR

• AMD CEO Lisa Su confirmed the company has licenses to ship MI308 AI chips to China and is willing to pay a 15% export fee
• The fee arrangement was part of an August deal between the Trump administration and chip companies, though legal experts question its constitutionality
• AMD excluded revenue from MI308 China shipments in its Q4 2025 guidance due to ongoing uncertainty
• A bipartisan group of senators introduced a new bill Thursday to restrict advanced chip exports to China
• China is pushing tech companies to use domestic chips instead of U.S. semiconductors in state-funded projects

AMD CEO Lisa Su spoke at a Wired conference in San Francisco on Thursday about the company’s situation with China exports. She said AMD has received licenses to ship some MI308 chips to China. The company is prepared to pay a 15% tax to the U.S. government if those shipments MOVE forward.

Advanced Micro Devices, Inc., AMD

The statement comes during a tricky time for U.S. chipmakers. Both AMD and Nvidia face uncertainty about when they can resume normal business with China. Trade tensions between the two countries continue to create obstacles for semiconductor companies.

President TRUMP announced a deal in August with AMD and Nvidia. Under this arrangement, both companies could resume shipping certain chips to China. The catch is they would need to pay a 15% fee to do so.

Some legal experts have raised concerns about this fee structure. They argue it could violate the U.S. Constitution’s ban on taxing exports. The debate over the legality continues while companies wait for clarity.

New Restrictions Loom

On Thursday, a bipartisan group of U.S. senators introduced fresh legislation. The bill aims to restrict AMD, Nvidia, and other chipmakers from exporting advanced chips to China. This development adds another LAYER of complexity to an already messy situation.

The Trump administration is also considering whether to allow Nvidia to sell its H200 AI chips to China. These decisions carry weight for the entire semiconductor industry.

AMD’s MI308 is a downgraded version of its Instinct MI300X series. The company designed it specifically to comply with U.S. export controls for the Chinese market. Export restrictions were placed on the MI308 alongside Nvidia’s H20 chip back in April.

During AMD’s Q4 2025 guidance announcement, the company left out revenue projections from MI308 China shipments. The exclusion reflects the ongoing uncertainty around export permissions.

China Pushes Domestic Alternatives

China isn’t sitting still while U.S. restrictions pile up. The Chinese government issued guidance for new data center projects that receive state funding. These projects must now use homemade AI chips exclusively.

This policy shift directly affects U.S. companies like AMD, Nvidia, and Intel. China represents a crucial market for these chipmakers. Losing access to Chinese customers puts pressure on their revenue streams.

Despite the challenges, Su expressed appreciation during the Q4 conference call. “We have received some licenses for MI308, so we’re appreciative of the administration supporting some licenses for MI308,” she said.

China’s foreign ministry responded to the latest U.S. moves on Friday. The ministry urged the American side to take concrete actions. They want to maintain stability and smooth operation of global supply chains.

Su’s comments at the Wired conference signal AMD’s willingness to work within the fee structure. The company has the licenses it needs for some MI308 shipments and stands ready to pay the 15% tax when exports resume.