U.S. export approvals stall chips

U.S. approvals for advanced artificial intelligence chips bound for China are slowing inside the Commerce Department, leaving Nvidia and Advanced Micro Devices waiting on export sign-offs months after Washington reopened a path for some sales. (finance.yahoo.com) The holdup sits at the Bureau of Industry and Security, the Commerce office that reviews sensitive technology exports. Bloomberg, cited by Yahoo Finance and Transport Topics, reported the bureau has lost 101 employees since 2024, about 19% of its head count. (finance.yahoo.com) (ttnews.com) Turnover among rulemaking and licensing staff has approached 20%, and average license turnaround times rose to 76 days in the first half of 2025 from 38 days in 2023, according to Bloomberg’s reporting cited by multiple outlets. (newsdefused.com) (finance.yahoo.com) That backlog has collided with a policy change from January 13, 2026, when the Bureau of Industry and Security said it would review export license applications for Nvidia H200, Advanced Micro Devices MI325X, and similar chips to China on a case-by-case basis. The rule took effect immediately. (bis.gov) The January rule did not create blanket permission. Applicants still have to show that shipments will not cut into supply for U.S. customers, that Chinese buyers use compliance screening, and that the chips pass third-party testing in the United States for performance and security. (bis.gov) That makes the staffing problem more than a paperwork issue. The same office is handling export licenses, new rulemaking, and a broader enforcement agenda as the United States keeps tightening controls on China’s access to advanced semiconductors and related equipment. (ttnews.com) (bis.gov) The current bottleneck follows a year of shifting chip rules. On April 15, 2025, the Commerce Department imposed new licensing requirements on Nvidia’s H20 and Advanced Micro Devices’ MI308 chips for China, and on December 2, 2024, the department expanded controls aimed at slowing China’s military-linked semiconductor and artificial intelligence capabilities. (cnbc.com) (bis.gov) Federal staffing pressure is not unique to this bureau. A March 2026 Government Accountability Office update said staffing fell across most major agencies in the first half of 2025, while a January 2026 federal workforce report said the Trump administration’s 2025 cuts reduced the civil service by more than 317,000 employees governmentwide. (gao.gov) (federalnewsnetwork.com) For Nvidia and Advanced Micro Devices, the practical result is simpler than the policy. Washington says some China sales can proceed under license, but the office that must approve those licenses has become the choke point. (bis.gov) (finance.yahoo.com)