Export approvals for AI chips stall

U.S. approvals for Nvidia and Advanced Micro Devices artificial intelligence chip exports to China are slowing, even after Washington changed the rules to allow some sales. (bloomberg.com) (bis.gov) The bottleneck sits at the Commerce Department’s Bureau of Industry and Security, the office that reviews export licenses for sensitive technology. Bloomberg reported on April 10 that staffing attrition, licensing backlogs and unclear policy direction are slowing reviews of Nvidia shipments to China and the Middle East. (bloomberg.com) The policy itself changed on January 13, when the bureau said it would review applications for Nvidia H200, Advanced Micro Devices MI325X and similar chips for China on a case-by-case basis instead of starting from a presumption of denial. That rule took effect January 15. (bis.gov) (federalregister.gov) That means the current holdup is not only about whether exports are legal. It is also about whether the government office handling the paperwork can move applications through its own system. (bloomberg.com) (ecfr.gov) The bureau’s workload has been rising for years as export controls expanded against China and after Russia’s 2022 invasion of Ukraine. A June 2025 Government Accountability Office report said Bureau of Industry and Security funding roughly doubled from fiscal 2013 to fiscal 2024, but the agency still lacked a long-term workforce plan and had last done bureau-wide workforce planning in 2016. (gao.gov) The office is not a niche regulator. In fiscal 2023, it processed 37,943 license applications, approved 32,365, returned 4,998 without action and denied 580, according to its annual report to Congress. (bis.gov) By regulation, license applications are supposed to be resolved or referred to the president within 90 calendar days after registration, although the clock can pause if applicants must supply more information or accept license conditions. (ecfr.gov) The older benchmark was much faster. Bureau of Industry and Security’s fiscal 2023 data showed an average processing time of 38 days per export license application. (bis.gov) The stakes are commercial as well as strategic. Nvidia and Advanced Micro Devices have built China-specific products to stay inside U.S. controls, but delayed approvals can still hold up shipments, revenue and customer relationships in one of the world’s largest artificial intelligence markets. (bis.gov) (bloomberg.com) For now, the rulebook says some sales can go forward, but the queue at the agency is deciding how quickly that policy reaches the loading dock. (federalregister.gov) (bloomberg.com)