A backlog at the Commerce Department is reportedly stalling Nvidia’s H20 chip licenses
A significant backlog within the U.S. Department of Commerce is reportedly causing delays in the licensing process for Nvidia’s H20 AI chips, potentially affecting sales to China. The situation arises despite earlier signals that certain AI chip sales would be permitted.
In July, U.S. Secretary of Commerce Howard Lutnick had indicated that chipmakers like Nvidia would receive the green light to resume selling specific AI chips in China. This update was initially seen as a positive development for the semiconductor industry’s engagement with the Chinese market, as detailed in reporting by TechCrunch.
However, according to recent reporting from Reuters, Nvidia has not yet received the necessary licenses to sell its H20 AI chips.
The delay is reportedly due to a substantial backlog of licensing applications at the Commerce Department. Reuters attributes this holdup to internal turmoil within the department, including a loss of staff and a breakdown in communications with the industry, issues that have hampered thousands of export approvals.
This ongoing holdup occurs concurrently with national security experts urging the Trump administration to impose restrictions on Nvidia’s H20 AI chip sales to China, citing potential national security risks. These concerns were highlighted in a report by TechCrunch.
