Story perspectives

US Requires Licenses for Nvidia, AMD Chips Sent to China

6/1/2026

Summary

Commerce Dept Licenses

On May 31 2026 U.S. Commerce Department required licenses for Nvidia’s Blackwell, Rubin and AMD’s MI350x chips sent to China entities.
The rule closes a loophole that opened after department stopped enforcing Diffusion rule in May 2025, letting Chinese subsidiaries obtain chips without a license.
Chris McGuire said the loophole was a problem because it let Chinese firms buy Blackwell chips, and guidance does not require data centers to stop using equipment containing chips.

Summary

US Lifts Ban

In July 2025 United States lifted its ban, permitting exports of NVIDIA’s H20 and AMD’s MI308 chips and requiring a 15% revenue share.
Controls that began in October 2022 saw President Donald Trump force NVIDIA to write off $5.5 billion and AMD to lose $800 million before a 25% licensing fee.
The bans have pushed Chinese firms to GPU marketplaces such as Akash, Render and io.net and are expected to raise costs, squeezing margins.

History

Historical Context

In May 2019 the U.S. Department of Commerce placed Huawei and 70 foreign subsidiaries on the Entity List, cutting off U.S. chip sales. The action followed the 2019 NDAA ban on Huawei equipment for federal agencies and pushed Chinese firms toward domestic supply. A 2025 rule expanding the list to cover subsidiaries now closes the loophole that let Chinese affiliates obtain GPUs, widening chip split.

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Commerce Dept Licenses

On May 31 2026 U.S. Commerce Department required licenses for Nvidia’s Blackwell, Rubin and AMD’s MI350x chips sent to China entities.
The rule closes a loophole that opened after department stopped enforcing Diffusion rule in May 2025, letting Chinese subsidiaries obtain chips without a license.
Chris McGuire said the loophole was a problem because it let Chinese firms buy Blackwell chips, and guidance does not require data centers to stop using equipment containing chips.

1 / 3