According to a Bloomberg story on Tuesday, American semiconductor manufacturer Advanced Micro Devices will have to seek for an export license after failing to get a made-for-China AI chip past US regulators.

Highlights:

• AMD's AI chip for China needs an export license due to US regulations.
• US restrictions on high-end semiconductor exports impact Nvidia and AMD.
• AMD aims to compete in China's AI chip market with its MI300 line despite regulatory hurdles.

According to the report, AMD created the chip with less performance than its high-end models to adhere to US export regulations. However, consistent with Bloomberg, the chip nevertheless turned out to be superior and the Commerce Department refused to approve its sale in China.

According to the thing, AMD will now need to use a license from the Bureau of Industry and Security beneath the department.

It's uncertain if the commercial enterprise will submit a license software. CNBC's requests for comment had not been immediately replied by using AMD or the Commerce Department's Bureau of Industry and Security.

American businesses have persevered to export mature or much less state-of-the-art technologies to the big market without licenses, regardless of the U.S. Proscribing sales of merchandise containing the kingdom's maximum superior semiconductor technologies to China because of country wide protection issues.

Chips from AMD are capable of creating and refining AI fashions, a functionality Beijing has been cautioned by US officers it is able to make the most to achieve army superiority.

The management of the U.S. President Joe Biden unveiled a first set of export restrictions in 2022 to restrict China's access to modern semiconductor technology. Leading AI chip producer Nvidia later said that it will offer slower versions of its high-end AI chips which are compliant with US guidelines.

But in October, the United States increased regulations to target chips that were thought to be getting around limits and feature more technology. As a result, those chips were also outlawed.

Since then, Nvidia has updated its devices to be less powerful in order to comply with the 2023 regulations for the Chinese market. 

Prior to the October limitations, Nvidia issued a warning, stating that any American export limits on its chips to China would put American semiconductor companies at risk of a "permanent loss" of their position as leaders in one of the world's largest markets.

Chief Financial Officer Colette Kress of Nvidia stated during the company's November results call that over the previous few quarters, China and other nations targeted by US export restrictions have regularly contributed between 20% and 25% of data center revenue. Despite Nvidia's spectacular fourth-quarter results, Kress mentioned in the February earnings call that China's data center revenue had drastically decreased when the United States imposed export restrictions.

Before the trade restrictions, AMD had less of a presence in the Chinese AI chip industry than Nvidia had. However, the business has started going after the AI chip market more actively, introducing a new MI300 product line that is meant to pose a threat to Nvidia's GPU offerings.