Nvidia(US:NVDA) Hua Er Jie Jian Wen·2025-08-02 05:12Core Points - The U.S. Department of Commerce's Bureau of Industry and Security is facing its most severe export license backlog in nearly 30 years, with thousands of applications, including those for high-value products like NVIDIA's AI chips, pending approval [1][2] - The backlog is attributed to internal management issues within the Bureau, which has failed to issue new regulations and has restricted communication with industry representatives, leading to a decline in efficiency and loss of expertise [1][3] Group 1: Export License Backlog - The current backlog of export license applications is the worst in over 30 years, with an average processing time of 38 days for each application in fiscal year 2023, totaling 37,943 applications processed and a rejection rate of 2% [2] - Delays in license approvals are putting U.S. companies at a competitive disadvantage globally, raising concerns among those advocating for stricter export controls and companies seeking overseas sales opportunities [1][2] Group 2: Management Issues - Jeffrey Kessler, the Deputy Secretary of the Bureau, has been criticized for micromanaging and lacking effective communication, which has further hampered the Bureau's operations [3] - Restrictions on communication with industry representatives and the requirement for meeting records have negatively impacted the Bureau's efficiency [3] Group 3: Regulatory Delays - The Bureau has delayed implementing regulatory changes, including the withdrawal and replacement of restrictions on AI chip exports, which were announced in May but have yet to be acted upon [3][4] - Other proposed rules, such as extending export restrictions to subsidiaries of companies already banned from receiving U.S. controlled exports, have also not been released [4]