Export approvals bottleneck for AI chips
Approvals for Nvidia and AMD AI‑chip exports to China are stalling because the Commerce Department's Bureau of Industry and Security is facing roughly 20% staff turnover, slowing shipments despite formal permissions. (startupnews.fyi) The result is administrative drag that complicates delivery schedules and customer expectations even where exports are technically allowed. (xataka.com)
Nvidia and Advanced Micro Devices can now apply to sell some top artificial intelligence chips to China, but the approvals are getting stuck inside the U.S. government. (bis.gov, finance.yahoo.com) On January 13, 2026, the Commerce Department’s Bureau of Industry and Security said it would review export licenses for Nvidia’s H200, Advanced Micro Devices’ MI325X, and similar chips on a case-by-case basis instead of treating them as presumptively blocked. The rule took effect immediately and added conditions on supply, customer compliance programs, and third-party testing in the United States. (bis.gov) That policy opened a legal path for sales, but Bloomberg reported this week that license reviews are now taking months as the bureau loses staff and senior officials scrutinize individual applications more closely. Bloomberg’s analysis found the bureau has lost 101 employees since 2024, a 19% drop, with turnover near 20% among rulemaking and licensing staff. (finance.yahoo.com, ttnews.com) The Bureau of Industry and Security is the office that signs off on shipments of sensitive technology, so a staffing slowdown can block exports even after the White House changes the rulebook. Bloomberg reported that processed licenses across industries fell by about 25% last year, while approvals for foreign buyers stretched into several months. (ttnews.com, finance.yahoo.com) The backlog reaches beyond China. The same office is also reviewing artificial intelligence chip exports to Saudi Arabia and the United Arab Emirates and handling tariff investigations on sectors including autos and steel, adding to the pile of work on a smaller staff. (ttnews.com, finance.yahoo.com) For chipmakers, the delay turns a policy win into a logistics problem. Bloomberg reported that Nvidia had received orders for H200 chips in China but had not completed a single sale months after the administration cleared the broader framework. (finance.yahoo.com) Nvidia Chief Executive Jensen Huang said on March 17, 2026, that the company had been licensed for “many customers in China” and was restarting H200 manufacturing for that market. That public optimism now sits next to reports that individual export approvals are still moving slowly inside Commerce. (bloomberg.com, finance.yahoo.com) The Commerce Department has framed the January rule as a way to permit limited sales while protecting national security. Under Secretary Jeffrey Kessler said the policy would allow exports “under controlled conditions,” but Bloomberg reported that Kessler is also personally examining nearly every license application, which people familiar with the process said has slowed decisions. (bis.gov, finance.yahoo.com) The immediate question is no longer whether these chips are allowed in principle. It is how fast the Bureau of Industry and Security can turn formal permission into actual shipments. (bis.gov, ttnews.com)
