NVIDIA’s H20 AI Export License Approval Reportedly Backlogged for 30 Years: Strict “Checking” Leaves AI Firms in Uncertainty

NVIDIA’s H20 AI chip may have recently secured export approval from the Trump administration, yet significant hurdles remain that could significantly delay its entry into the Chinese market.

Challenges Facing NVIDIA’s H20 AI Chip Export to China Due to Licensing Backlog

While the U. S.government has alleviated some restrictions on NVIDIA’s H20 AI GPUs, a critical licensing approval from the Commerce Department is still necessary. Although this development was initially regarded as a positive for NVIDIA’s operations in China, regulatory bottlenecks are hindering the timely distribution of these chips. As reported by Reuters, a staggering number of licensing applications are caught in a logjam, with the Bureau of Industry and Security (BIS) struggling to manage the high volume of requests.

While U. S.Commerce Secretary Howard Lutnick has become a familiar face touting President Donald Trump’s tariff and trade deals, sources said the export bureau under Lutnick’s command has failed to issue expected new rules, stifled communications with industry representatives, pushed out experts, and lost staff through buyouts and resignations.– Reuters

The delays attributed to the BIS have caught the attention of U. S.officials, who assert that the backlog for licensing approvals is presently at an unprecedented thirty years—the longest in history. Despite the lifting of the export ban, the approval process for H20 AI chips remains stagnant, sparking concerns among companies that heavily rely on these advanced technologies for their AI operations. According to the Commerce Department, the extended delay is a result of the authority’s stringent scrutiny of applications, prioritizing national security over expediency.

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The ramifications of this licensing backlog are profound, particularly for AI firms that depend on the timely import of NVIDIA’s H20 chips. Although the rigorous approval process affords the U. S.government greater control over technology transfers to China, existing communication gaps within the BIS and concerns about leadership effectiveness, particularly under Undersecretary Jeffrey Kessler, are impeding progress.

The uncertainty surrounding the resolution of the licensing backlog leaves question marks over NVIDIA’s ability to fulfill shipments of its H20 AI chips to China. Strengthening the efficiency of the BIS in handling these applications may be imperative for both NVIDIA and the broader market reliant on cutting-edge AI technologies.

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