Nvidia’s (NASDAQ:NVDA) plans to resume large-scale sales of its H200 artificial intelligence chips to China remain on hold nearly two months after U.S. President Donald Trump approved exports, as Washington conducts a national security review of licence applications, the Financial Times reported on Tuesday.
The U.S. government has yet to grant final approvals, prompting Chinese customers to delay placing orders until it is clear whether licences will be issued and under what conditions, the report said, citing people familiar with the matter.
Nvidia had ramped up production in anticipation of strong demand after a December agreement brokered by CEO Jensen Huang raised hopes of re-entering what he has described as a $50 billion-a-year market.
Implementation of the deal has since slowed, with some suppliers pausing production of key components as inter-agency reviews continue, according to the FT.
While the commerce department has completed its analysis, the state department is pushing for tougher restrictions, citing security concerns, the report added.
The December agreement, which also covers rival Advanced Micro Devices (NASDAQ:AMD), allows exports subject to strict conditions, including reviews of end use and limits on shipments.
