Following the lead of rivals Nvidia (NVDA) and Intel (INTC), Advanced Micro Devices (AMD) suggested it could develop AI chips specifically designed for the Chinese ma🐠rket to comply with U.S. exportܫ curbs.

Lisa Su, CEO of 𒀰AMD, told investors in an earnings call on Tuesday she sees an opportunity for growth in China, an important mark❀et for the company, by developing a product that complies with export controls.

The performance limits of AMD's MI300 chip series prevent its sales to the lucrative Chinese markets, and unlike its rivals, AMD has yet to create specially-designed chips that it can export under the current regulations.

But AMD is now considering modified versions of MI300 and older MI250 chips that would comply with U.S. Department of Commerce restrictions, Su said. AMD plans to increase production of its MI300 chip which rivals dominant player Nvidia's graphics processing units. The MI300 chip is expected to grow AMD's data center business, leading to around 50% growth in the second half of the year.

Last year, the U.S. implemented measures to block the exports of an array of chips to China. The regulations prevented AMD competitor Nvidia from selling its two most advanced chips, the A100 and the newer H100. In response, Nvidia designed China-export versions A800 and H800, which had some reduced capabilities of their A100 and H100 counterparts.

Similarly, Intel developed the Gaudi2 processor that was not subject to US export restrictions. Revenue from billings to China was 27% of Intel's total revenue in the last fiscal year, underlining the country's importance for the chipmaker.

AMD shares were up about 2% in pre-market trading on Wedn⛎esday following the news and after reporting better-than-expected second quarter results. Its earning per share of $0.58 was one cent better than projections, while its revenue at $5.36 billion was $60 million higher than estimates. Shares of AMD were over 81% higher year-to-date.🐬