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AMD says US rule on chips to China could cost it $800 million

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Chip developer Advanced Micro Devices (AMD) on Wednesday said it expects new US licensing requirements for semiconductors exported to China to cost it as much as $800 million.

The Silicon Valley company’s earnings warning, filed with the US Securities and Exchange Commission (SEC), came a day after rival Nvidia notified regulators that it expects a $5.5 billion hit this quarter from licensing requirements on the main chip it can legally sell in China.

Shares in both companies were down by about 7 percent at the close of formal trading on Wednesday.

The…

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