Export Approvals Stall
Approvals for Nvidia and AMD AI-chip exports to China are reportedly stalling because the U.S. Bureau of Industry and Security has suffered roughly 20% staff turnover, pushing review times into months. The administrative backlog, not just policy change, is being flagged as the practical bottleneck for shipments. (startupnews.fyi)
U.S. approvals for Nvidia and Advanced Micro Devices artificial-intelligence chip exports to China are taking months as staffing losses clog the Commerce Department office that signs off on them. (bloomberg.com) The office is the Bureau of Industry and Security, the Commerce Department arm that enforces export controls on sensitive technology. Bloomberg reported on April 10 that turnover among rulemaking and licensing staff was nearing 20% as the bureau took on more chip reviews and tariff work. (bloomberg.com) Those delays are hitting a licensing system that was already measured in weeks, not days. In its fiscal 2023 annual report, the Bureau of Industry and Security said its average export-license processing time was 38 days, including interagency review by the Defense, Energy and State departments. (bis.gov) The bottleneck comes after Washington formally reopened a path for some advanced chip sales to China. On January 13, 2026, the Bureau of Industry and Security said it would review license applications for Nvidia H200, Advanced Micro Devices MI325X and similar chips on a case-by-case basis if exporters met security conditions. (bis.gov) Those conditions are detailed and company-specific. The bureau said applicants must show the exports will not reduce chip supply for U.S. customers, that the Chinese buyer has compliance procedures in place, and that the product passed independent testing in the United States for performance and security. (bis.gov) That means the practical constraint is no longer only whether a shipment is legal on paper. A chip can fit the January 2026 rule and still sit in line while officials work through a backlog of individual applications. (bloomberg.com) The stakes are large because China remains a meaningful market even after earlier restrictions. Nvidia said in its annual report for the fiscal year ended January 26, 2025 that data-center revenue in China grew in fiscal 2025, though it remained well below levels seen before the October 2023 export controls. (sec.gov) Advanced Micro Devices also flagged China risk in its annual report for the fiscal year ended December 28, 2024, saying U.S. export controls and licensing requirements can limit sales and create uncertainty for customers and partners. (ir.amd.com) The immediate question is whether the Bureau of Industry and Security can clear the queue fast enough to match the White House’s January policy shift. Until it does, the pace of chip shipments will depend as much on government staffing as on semiconductor demand. (bis.gov)
