Export‑licensing backlog
The U.S. Bureau of Industry and Security has lost nearly a fifth of its licensing and rulemaking staff, creating a backlog that is stalling approvals for Nvidia and AMD AI‑chip exports to China. The staffing shortfall is generating uncertainty for suppliers and Chinese buyers that need licences processed before shipments can proceed (tomshardware.com).
A staffing slump at the U.S. office that approves sensitive tech exports is pushing Nvidia and Advanced Micro Devices chip licenses into months-long delays. (bloomberg.com) The Bureau of Industry and Security, part of the Commerce Department, has lost dozens of experienced employees over the past year, with turnover near 20% among rulemaking and licensing staff, Bloomberg reported on April 10. The same office also vets exports tied to President Donald Trump’s tariff probes and other trade controls. (bloomberg.com) Those delays now reach Nvidia and Advanced Micro Devices sales to China. Nvidia said in an April 9, 2025 filing that its H20 chip needs a U.S. license for China, Hong Kong, Macau, and certain related buyers, while Advanced Micro Devices said on April 15, 2025 that the same kind of rule applies to its MI308 products. (sec.gov) (ir.amd.com) An export license is the government’s shipment-by-shipment permission slip for products that could have military or supercomputing uses. Nvidia said the United States imposed the H20 rule to address the risk that the chip could be used in, or diverted to, a supercomputer in China. (sec.gov) The holdup lands after Washington tightened China chip controls again in April 2025. Nvidia warned that the H20 restriction could trigger about $5.5 billion in charges, and Advanced Micro Devices said its MI308 restriction could lead to charges of up to $800 million. (sec.gov) (ir.amd.com) The licensing office already handled a heavy caseload before the recent staffing losses. In fiscal 2023, the Bureau of Industry and Security processed 37,943 license applications, approved 32,365 of them, and denied 580, according to its annual report to Congress. (bis.gov) Industry groups had been warning about strain at the agency before the latest report on the backlog. Axios reported on March 31, 2025 that Americans for Responsible Innovation was pushing back on Trump administration budget cuts at the Bureau of Industry and Security as the office’s workload grew with artificial intelligence and China-related controls. (axios.com) The bureau is still writing new semiconductor policy while trying to clear old cases. On January 13, 2026, the Bureau of Industry and Security said it had revised its license review policy for semiconductor exports to China, adding another layer of work for the same office handling individual applications. (bis.gov) For chipmakers and Chinese customers, the immediate problem is less the text of the rules than the wait for signatures. Until the Bureau of Industry and Security clears those licenses, approved shipments do not move. (bloomberg.com)
