Commerce Department Backlog Delays Nvidia’s H20 Chip License Approval: Potential Impact on Tech Industry Discussed

The U.S. Department of Commerce, headed by Secretary Howard Lutnick, granted preliminary approval in July for chipmakers such as Nvidia to resume sales of specific artificial intelligence (AI) chips in the Chinese market. However, the process appears to be delayed due to internal issues within the department.

As reported by Reuters, Nvidia is yet to receive a license to sell its H20 AI chips in China. The delay is attributed to an accumulation of licensing applications within the department, resulting from staff reductions and communication breakdowns with the industry, according to Reuters’ sources.

This development comes at a time when national security experts are advocating for the Trump administration to impose restrictions on Nvidia’s sales of H20 AI chips to China due to potential national security implications.