AMD, Nvidia, others in focus as Chinese chip associations call US processors ‘unsafe’

AMD (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) were among the U.S. semiconductor companies were in focus on Tuesday as four Chinese semiconductor industry associations said processors made in the U.S. are “no longer safe” in response to the newly enacted export control curbs by the Biden administration.

AMD and Nvidia shares were little changed in early trading.

The comments came from groups including Internet Society of China and the China Association of Communication Enterprises. In total, the four groups, which released similarly worded statements right after each other, represent roughly 6,400 members combined. The statements did not say why U.S. processors are “unsafe” or unreliable, Reuters reported.

Nvidia, which reported third-quarter results late last month, said it saw data center revenue in China grow sequentially due to shipments of “export-compliant copper products to industries.” AMD said it is “underrepresented” in China in the server CPU market and believes it may have an opportunity to gain share in the Asian country.

Intel (NASDAQ:INTC), which also has exposure to China, said it saw a 50% drop in shipments to the country in its most recent quarter.

Separately on Tuesday, China’s commerce ministry banned exports of “dual-use items” related to gallium, germanium, antimony and super hard materials to the U.S. with immediate effect.

Gallium and germanium are used in semiconductors, while germanium is also used in infrared technology, fiber optic cables and solar cells.