A backlog at the Commerce Department is reportedly stalling Nvidia’s H20 chip licenses

Earlier in July, U.S. Secretary of Commerce Howard Lutnick gave chipmakers like Nvidia the green light to start selling certain AI chips in China again, but his department is said to be holding things up.

According to reporting from Reuters, Nvidia has yet to receive a license to sell its H20 AI chips.

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, per Reuters.

This holdup comes as national security experts are urging the Trump administration to restrict Nvidia from selling its H20 AI chips to China on national security grounds.