Plans by Nvidia (NASDAQ:NVDA) to restart large-scale sales of its H200 artificial intelligence chips to China remain stalled nearly two months after U.S. President Donald Trump approved the exports, as Washington continues a national security review of the relevant license applications, the Financial Times reported on Tuesday.
According to the report, U.S. authorities have yet to issue final clearances, leading Chinese customers to hold back on placing orders until there is clarity on whether export licenses will be granted and under what terms. The FT cited people familiar with the situation.
Nvidia had increased production in anticipation of renewed demand following a December agreement negotiated by chief executive Jensen Huang, which fueled expectations of re-entering what he has described as a $50 billion-a-year market. However, progress on implementing that deal has since slowed.
The report said some suppliers have paused production of critical components as interagency reviews continue. While the U.S. Commerce Department has completed its assessment, the State Department is reportedly advocating for tighter constraints, pointing to national security risks.
The December arrangement also applies to rival Advanced Micro Devices (NASDAQ:AMD) and permits exports only under strict conditions, including detailed end-use checks and limits on shipments.