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According to Reuters, thousands of export applications are currently stalled as the BIS struggles with processing a large volume of requests. U.S. Commerce Secretary Howard Lutnick has acknowledged issues within the export bureau, including the failure to issue new rules, reduced communication with industry representatives, and staff losses through buyouts and resignations.
Despite the Trump administration lifting the ban on H20 AI GPUs, licensing approval from the Commerce Department is still required. One U.S. official stated that no license has been approved for the transfer of H20 chips to China despite the ban being lifted. The backlog is reportedly the longest in history, with the BIS strictly checking applications rather than rubber-stamping them.
This delay could significantly impact NVIDIA’s ability to supply its AI chips to China and may create complications for many AI firms relying on export equipment. Whether these delays will ultimately affect shipments of NVIDIA’s H20 AI chips to China remains uncertain, but it is clear that the BIS needs to improve its efficiency.
