NVIDIA's H20 AI chip might have received approval for export by the Trump administration, but there are a lot of other hindrances that are stalling the process tremendously.
NVIDIA's H20 AI Chip Could Face a Stall In Reaching China, Amid the Massive Licensing Backlog In the US
The US administration did bring relief to NVIDIA after apparently lifting the ban on the H20 AI GPUs, but it still requires licensing approval for the Commerce Department to regulate. While the approval was seen as a sign of positive moves for NVIDIA-China business, it seems like the regulatory process is apparently delaying the flow of chips into the regions, as according to Reuters, thousands of licensing applications are currently stalled, as the Bureau of Industry and Security (BIS) is facing troubles with dealing a large 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
Interestingly, it is claimed that the BIS delay has delayed the transfer of H20 AI chips in China. According to the report, no license has yet been approved despite the ban being lifted. One of the US officials concerned with the matter claimed that the license backlog which is the highest in the last thirty years. However, according to the Commerce Department, the backlog is attributed to how the authority is "strictly checking" applications, instead of "rubber-stamping" them, in a bid to ensure national security.
With the delay in licensing measures, it is claimed that the flow of NVIDIA's H20 chips into China could take some time, and with the massive backlog, it certainly would create complications for many AI firms that are relying on the export equipment. While a strict process does allow the US to regulate the flow of technology into China, it is claimed that the BIS has communication issues, and that the current undersecretary Jeffrey Kessler has failed to manage the organization effectively.
Whether or not licensing backlog will delay NVIDIA's H20 AI chips shipments to China is a question yet to be answered, but it seems like the BIS needs to step up its game.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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