Commerce Department Backlog Allegedly Delays Nvidia H20 Chip Licenses

Nvidia, semiconductors, AI, chips Nvidia, semiconductors, AI, chips

Nvidia still stuck waiting on U.S. export license for its H20 AI chips to China.

The green light was given earlier this July by U.S. Secretary of Commerce Howard Lutnick, but the Commerce Department isn’t approving licenses fast enough.

A backlog of licensing requests is building due to internal turmoil, staff shortages, and sloppy communication with the chip industry, Reuters reports.

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National security experts are pushing the Trump administration to block Nvidia’s H20 chips sales to China over security concerns.

This delay leaves Nvidia in limbo months after getting initial approval, stalling business in a critical AI market.

“The U.S. Department of Commerce is currently sitting on a backlog of licensing applications due to turmoil within the department, in large part because of a loss of staff and a breakdown in communications with the industry.”

Nvidia has yet to receive the license needed to move forward on H20 chip sales in China. The situation remains fluid.

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