Chip export approvals stalled

U.S. approvals for advanced artificial intelligence chip exports have slowed to a crawl inside the Commerce Department, leaving Nvidia and other companies waiting months for licenses to ship to China. (bis.gov) (bloomberg.com) The bottleneck sits at the Bureau of Industry and Security, the office that reviews exports of dual-use technology, meaning products with civilian and military uses. Bloomberg reported on April 10 that the bureau has lost dozens of experienced employees over the past year, with nearly 20% turnover among rulemaking and licensing staff. (gao.gov) (bloomberg.com) That staffing loss has collided with a policy change announced on January 13, when the bureau said it would review license applications for Nvidia’s H200 and Advanced Micro Devices’ MI325X chips for China on a case-by-case basis. The rule followed President Donald Trump’s December 8, 2025 decision to allow H200-class chips to go to approved Chinese buyers under new conditions. (bis.gov) Nvidia said in a February securities filing that the United States had granted a license for “small amounts” of H200 products to specific customers in China. But Chief Financial Officer Colette Kress said on February 25 that the company had “yet to generate any revenue” from those approvals. (bloomberg.com) (cnbc.com) By March 17, Chief Executive Jensen Huang said Nvidia had received purchase orders from China and was restarting manufacturing of the H200. Reuters and CNBC reported that Nvidia then obtained clearance from both Washington and Beijing for many customers after months of approvals on both sides. (usnews.com) (cnbc.com) The delay matters because the H200 is the most advanced Nvidia chip now eligible for sale in China under current United States rules. Reuters reported that China once generated 13% of Nvidia’s total revenue, while CNBC said the country had accounted for at least one-fifth of Nvidia’s data center revenue before tighter restrictions shut that market down. (usnews.com) (cnbc.com) The bureau’s slowdown also reaches beyond one company. Bloomberg reported that approvals for chipmakers and other exporters now stretch for months, creating billions of dollars in backlogs, including shipments meant for United States allies. (bloomberg.com) This pressure was building before the latest stall. A June 2025 Government Accountability Office report said the Bureau of Industry and Security had expanded from 403 funded positions in 2013 to 585 in 2024, but still lacked a long-term workforce plan even as export-control workloads widened. (gao.gov) The January rule added more conditions to each China-bound chip shipment, including proof that exports would not reduce supply for United States customers, compliance procedures at the Chinese buyer, and independent third-party testing in the United States. Those checks are now being handled by a thinner staff. (bis.gov) (bloomberg.com) The result is a policy that exists on paper but has moved unevenly in practice. Three months after Washington opened a path for H200 exports, the licenses, staff and inspections still appear to be deciding how much business can actually cross the border. (bis.gov) (cnbc.com)