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The U.S. semiconductor industry has experienced a notably turbulent period thus far this year. Stay up-to-date with all the changes in the chip industry.
The semiconductor industry is a crucial player in the ongoing “AI race,” a contest the U.S. is determined to win. Several key events have shaped the landscape, including Intel’s appointment of Lip-Bu Tan as CEO, who has promptly initiated efforts to rejuvenate the established company. Moreover, Joe Biden proposed comprehensive new AI chip export restrictions before leaving office, although these measures ultimately did not materialize.
Here’s a breakdown of significant developments in the first half of 2025.
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June
New Leadership Appointments at Intel
June 18 – Intel announced the addition of four new leaders to the company. These appointments, according to Intel, are designed to bolster the company’s transition toward becoming an engineering-centric organization once more. The changes included announcing a new chief revenue officer and several key engineering hires.
Intel Announces Impending Layoffs
June 17 – Intel is slated to begin reducing its workforce within the Intel Foundry division in July. The company intends to eliminate at least 15%, and potentially up to 20%, of the employees in this business unit. This move aligns with previous speculation from April and CEO Lip-Bu Tan’s stated goal to streamline the organization.
Nvidia Ceases Reporting on China
June 13 – Nvidia anticipates no imminent relaxation of U.S. AI chip export restrictions. Following a financial downturn resulting from newly implemented licensing mandates on its H20 AI chips, Nvidia CEO Jensen Huang stated that the company will exclude the Chinese market from future revenue and earnings projections.
AMD Acquires Untether AI Team
June 6 – AMD continues its acquisition strategy, now focusing on talent acquisition. The company has acquired the team behind Untether AI, a developer of AI inference chips, further expanding the semiconductor giant’s AI capabilities.
AMD Challenges Nvidia’s AI Hardware Dominance
June 4 – AMD persists with its acquisition efforts, acquiring AI software optimization startup Brium. Brium specializes in adapting AI software to function with diverse AI hardware. Given the prevalence of AI software designed specifically for Nvidia hardware, this acquisition is strategically advantageous.
May
Nvidia Assesses Impact of Chip Export Limits
May 28 – Nvidia reported that U.S. licensing mandates on its H20 AI chips resulted in charges of $4.5 billion during Q1. The company projects these requirements will cause an $8 billion reduction in Nvidia’s revenue in Q2.
AMD Acquires Enosemi in Expansion Move
May 28 – AMD initiates an acquisition spree with the purchase of Enosemi, a silicon photonics startup. Enosemi’s technology, utilizing light photons for data transmission, is gaining increasing attention within the semiconductor industry.
U.S. and China Face Rising Tensions
May 21 – China’s Commerce Secretary voiced disapproval of the U.S.’s guidance, issued on May 13, cautioning U.S. companies that using Huawei’s AI chips “anywhere in the world” would constitute a violation of U.S. chip export regulations. The commerce secretary threatened legal action against those enforcing the restriction.
Intel Considers Divesting Non-Core Business Units
May 20 – Intel CEO Lip-Bu Tan appears to have promptly initiated his plan to spin off non-core business units. The semiconductor firm is reportedly seeking to divest its networking and edge units, which produce chips for telecom equipment and accounted for $5.4 billion of the company’s 2024 revenue.
Biden Administration’s AI Diffusion Rule Rescinded
May 13 – Days before the Biden administration’s Artificial Intelligence Diffusion Rule was scheduled to take effect, the U.S. Department of Commerce formally withdrew it. The DOC indicated plans to issue revised guidance in the future, reminding companies that utilizing Huawei’s Ascend AI chips globally violates U.S. export rules.
A Last-Minute Reversal on AI Diffusion
May 7 – Just a week before implementation of the “Framework for Artificial Intelligence Diffusion,” the Trump administration shifted direction. According to multiple media reports, the administration will postpone enforcing the restrictions and develop its system instead.
April
Anthropic Reaffirms Support for Chip Export Restrictions
April 30 – Anthropic reinforced its support for restricting exports of U.S.-made chips, advocating adjustments to the Framework for Artificial Intelligence Diffusion, such as reinforcing limitations on Tier 2 countries and concentrating on enforcement.
A Nvidia representative rebutted, “American firms should prioritize innovation and meet the challenge, instead of fabricating stories about heavy, sensitive electronics being smuggled as ‘baby bumps’ or ‘alongside live lobsters.'”
Intel Announces Planned Layoffs
April 22 – Prior to its Q1 earnings call, Intel announced that it intended to lay off more than 21,000 employees. The purpose was to streamline the organization, a necessity Intel CEO Lip-Bu Tan had consistently stressed, and help rebuild the company’s primary focus on engineering.
Trump Administration Tightens Restrictions on Chip Exports
April 15 – Nvidia’s H20 AI chip became subject to an export licensing requirement, as disclosed in an SEC filing. The company estimated $5.5 billion in charges connected to this new mandate in the first quarter of its 2026 fiscal year. The H20 is Nvidia’s most advanced AI chip still permitted for export to China in limited forms. TSMC and Intel declared analogous expenses that same week.
Nvidia Navigates Out of Further Chip Export Restrictions
April 9 – Nvidia CEO Jensen Huang was reportedly seen at a dinner at Donald Trump’s Mar-a-Lago resort. NPR reported that Huang might have prevented export restrictions on Nvidia’s H20 AI chips by consenting to invest in AI data centers in the U.S.
Intel and TSMC Reportedly Reach Agreement
April 3 – Intel and TSMC allegedly reached a preliminary agreement to form a joint chipmaking venture. This venture would manage Intel’s chipmaking facilities, with TSMC owning a 20% stake. Both companies rebuffed confirming information. This deal may be a preview of possible future arrangements in the industry.
Intel Spins Off Noncore Assets and Announces New Initiative
April 1 – Shortly after joining Intel, CEO Lip-Bu Tan began to implement strategic adjustment. The company announced it would divest noncore assets to focus on core competencies. Intel is also launching new products, including custom semiconductors for clients.
March
Intel Appoints New CEO
March 12 – Intel revealed that industry veteran Lip-Bu Tan, a former board member, would reassume his role as CEO on March 18. Tan declared that under his leadership, Intel would transform into an “engineering-focused company.”
February
Intel’s Ohio Chip Plant Faces Another Delay
February 28 – Intel’s chip fabrication plant in Ohio was slated to commence operations this year. However, construction was slowed down for the second time in February. The completion of the $28 billion project is now pushed back to 2030, with potential opening in 2031.
Senators Advocate for Increased Chip Export Restrictions
February 3 – U.S. senators, including Elizabeth Warren (D-Mass) and Josh Hawley (R-Mo), addressed a letter to Commerce Secretary Nominee-Designate Howard Lutnick, urging the Trump administration to impose stricter AI chip export limits. The letter specifically cited Nvidia’s H20 AI chips, utilized in training DeepSeek’s R1 “reasoning” model.
January
DeepSeek Releases Its Open “Reasoning” Model
January 27 – DeepSeek, a Chinese AI startup, stirred significant interest in Silicon Valley with the release of the open version of its R1 “reasoning” model. This event had cascading impacts across the AI and semiconductor industries which continue to this day.
- Deep Seek’s release shook the semiconductor world.
- Their “Reasoning Model” caused immediate ripples in chip demand.
- Silicon Valley was particularly stirred by these advancements.
Executive Order on Chip Export from Joe Biden
January 13 – Before departing from office, former president Joe Biden proposed comprehensive new export restrictions on U.S.-manufactured AI chips. This order established a three-tier framework governing the number of U.S. chips permissible for export to each country.
Under this proposal:
- Tier 1 nations faced no restrictions.
- Tier 2 nations encountered a purchase limit for the first time.
- Tier 3 nations experienced further restrictions.
Anthropic’s Dario Amodei Addresses Chip Export Controls
January 6 – Anthropic co-founder and CEO Dario Amodei co-authored an op-ed in The Wall Street Journal endorsing existing AI chip export controls and highlighting them as a reason for the U.S.’s lead in the AI market over China. He encouraged incoming president Donald Trump to implement stricter limitations and close loopholes that allowed AI firms in China to acquire these chips.