President Donald Trump came to office promising to make America the undisputed leader in artificial intelligence. But the small government office responsible for approving the export of American chips and technology to the world is buckling — and his own administration’s policy choices may be making it worse.
According to a Bloomberg News investigation, the Bureau of Industry and Security, housed within the Commerce Department, is facing a combination of staff departures, lengthy approval delays, and shifting policy direction at precisely the moment it is needed most.
Months-long delays in export licence approval
Bloomberg reports that export licence approvals for chipmakers and technology companies have stretched to several months, creating multi-billion dollar backlogs — including for shipments bound for close US allies.
Citing data compiled by the Semiconductor Industry Association from members including Intel, AMD and ASML, the report says that in the first half of 2025, licences for chip exports to allies such as Canada, Japan and the United Kingdom took an average of 76 days — roughly double the 38-day average recorded in 2023.The Semiconductor Industry Association wrote to the Commerce Department warning that the delays “undermine US competitiveness and run counter to the administration’s goals,” Bloomberg reported.
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War in Iran adds to the distraction
In its report, Bloomberg notes that the administration’s attention has shifted sharply toward the war in Iran since late February, pulling senior officials away from the technology export agenda that had dominated Trump’s first year back in power. The conflict has also forced the postponement of a planned Trump-Xi summit, where access to AI chips and rare earth minerals were expected to be key topics.The Bloomberg investigation also found that nearly one in five employees involved in rulemaking and licensing at the bureau have departed over the past year.
Overall headcount across the bureau has fallen by around 19% since 2024, according to Office of Personnel Management data cited by Bloomberg. Of the 12 most senior roles in the Export Administration — the unit that processes licence applications — almost all have seen turnover since early 2025.The bureau also remains without a permanent head of the Export Administration after its nominated leader’s appointment was withdrawn last year.The White House defended the approach, with spokesman Kush Desai saying the bureau was taking “a nimble and hands-on approach” and that “the days of the federal government lackadaisically rubberstamping decisions with serious implications for national and economic security ended the moment President Trump took office.”Experts quoted by Bloomberg warned the consequences extend well beyond semiconductor sales. With the bureau also overseeing export controls tied to Russia’s war in Ukraine and the broader US-China technology rivalry, its capacity matters enormously.“It is a horrible case of being penny-wise and pound-foolish to not invest in this office,” Gregory Allen of the Center for Strategic and International Studies told Bloomberg.
