NVIDIA's AI chip sales to China are delayed due to export license delays caused by chaos at the US Department of Commerce's Bureau of Indus

NVIDIA's AI chip sales to China have been delayed due to export license delays caused by chaos at the US Department of Commerce's Bureau of Industry and Security (BIS).

1. **Strategic Impact**: The delays are a strategic challenge for NVIDIA's sales efforts in China, as the Chinese market is critical for NVIDIA's revenue plans through 2025. The H20 chip is a modified version built to comply with US export controls, but even this has not sped up licensing.
2. **Backlog and Staffing Issues**: The US Department of Commerce is experiencing an unprecedented backlog in processing export license applications, with thousands of applications stalled, including those for AI chip exports to China. This backlog is the worst in over 30 years and is affecting global tech shipments.
3. **Competitive Edge and Market Position**: The delays threaten America’s competitive edge in global tech trade and could result in lost market share as Chinese companies explore alternative suppliers. NVIDIA's TSMC orders have soared despite the uncertainty, reflecting the demand from China.
4. **Policy and Regulatory Delays**: The Commerce Department is facing challenges in implementing and updating export control policies, with delayed rule changes and unpredictability. This puts US industry at an unnecessary disadvantage and could impact NVIDIA's market position.

In conclusion, NVIDIA's AI chip sales to China are delayed due to the broader chaos and delays within the US Department of Commerce's Bureau of Industry and Security, which has created a significant bottleneck for export licenses, impacting not only NVIDIA but also other technology companies.