a timeline of the us semiconductor market in 2025

A Year of Change for U.S. Semiconductors

The U.S. semiconductor industry has experienced a period of significant upheaval throughout the past year.

The Semiconductor Industry and the AI Landscape

The semiconductor sector is critically important to the ongoing competition – often referred to as the “AI race” – in which the United States is striving for leadership.

This makes developments within the industry particularly noteworthy.

Key Events of 2025

Several pivotal events have shaped the industry’s trajectory in 2025.

• Intel’s Leadership Transition: The appointment of Lip-Bu Tan as CEO marked a turning point for Intel.
• Revitalization Efforts: Tan immediately initiated efforts aimed at reinvigorating the established company.
• Proposed Export Regulations: President Biden initially proposed extensive new regulations concerning the export of AI chips.
• Regulations Unfulfilled: These proposed export rules, however, were ultimately not implemented before the end of his term.

These events collectively illustrate the dynamic nature of the U.S. semiconductor industry and its central role in technological advancement.

Continued monitoring of these developments is essential for understanding the future of AI and related technologies.

August

Nvidia Announces Record Quarterly Performance

August 27: Despite the challenges faced by the semiconductor industry throughout the year, Nvidia has demonstrated remarkable resilience. The company reported unprecedented sales figures for the second quarter on August 27th. A significant driver of this success was the expansion of its data center business, experiencing a 56% year-over-year revenue increase.

U.S. Government Acquires Equity in Intel

August 22: A noteworthy development occurred as the U.S. government declared its conversion of existing grants into a 10% ownership stake in Intel. This arrangement includes stipulations designed to discourage Intel from reducing its foundry program ownership below a 50% threshold.

SoftBank Invests in Intel

August 18: Japanese investment firm SoftBank revealed a $2 billion investment in Intel. SoftBank’s CEO, Masayoshi Son, characterized the move as a “strategic” decision. This announcement followed speculation regarding potential U.S. government investment in the company.

Agreement Reached for Chip Sales to China

August 12: Nvidia and AMD reached an agreement with the U.S. government, securing the necessary licenses to resume sales of their AI chips to China. As part of the agreement, both companies will remit 15% of revenue generated from these sales to the U.S. government.

Meeting Between Trump and Intel CEO

August 11: Intel CEO Lip-Bu Tan visited the White House for a meeting with President Donald Trump. Discussions centered on Tan’s background and Intel’s potential contributions to the U.S. objective of revitalizing domestic semiconductor manufacturing. Both parties described the dialogue as constructive.

Trump Calls for Intel CEO’s Resignation

August 7: President Donald Trump publicly demanded the immediate resignation of Intel CEO Lip-Bu Tan, citing “conflicts of interest” in a post on Truth Social. The specific nature of these alleged conflicts remained unspecified, occurring a day after Senator Tom Cotton requested information from Intel’s board regarding Tan’s connections to China.

Potential Tariffs on Semiconductor Industry

August 5: During an interview with CNBC’s Squawk Box, President Donald Trump indicated his intention to announce tariffs on the semiconductor industry within the following week. Details regarding the scope and specifics of these potential tariffs were not provided at the time. As of September 5th, no such tariffs have been implemented.

July

Intel Business Unit Separation

July 25: Following its second-quarter earnings report, Intel officially announced the spin-off of its Network and Edge group. This division focuses on the development of chips tailored for the telecommunications sector.

In 2024, this business unit generated $5.8 billion in revenue for the semiconductor giant.

Intel's Pursuit of Operational Efficiency

July 24: Intel revealed a scaling back of certain manufacturing initiatives. Previously announced projects in both Germany and Poland have been discontinued, and test operations are being consolidated.

The company anticipates concluding the year with a workforce of approximately 75,000 employees.

Trump Administration's AI Strategy

July 23: The Trump administration formally presented its AI Action Plan, accompanied by several associated executive orders. The plan emphasizes the necessity of U.S. controls on chip exports and collaboration with allies on this matter.

However, specific details regarding the implementation of these restrictions remain undefined.

Potential Halt to Significant UAE AI Agreement

July 17: A landmark agreement facilitated by the Trump administration in May involved a commitment from the United Arab Emirates to purchase billions of dollars worth of AI chips from Nvidia.

Reports now indicate this deal is paused as the U.S. addresses national security concerns and the possibility of chip smuggling to China from the Middle East.

Nvidia as a Component of Trade Negotiations

July 16: The recent authorization for semiconductor companies, including Nvidia and AMD, to resume sales of specific AI chips to China is linked to broader trade discussions.

U.S. Commerce official Howard Lutnick stated that allowing these sales is connected to ongoing negotiations with China concerning rare earth elements.

Resumption of U.S. Chip Sales to China

July 14: Nvidia announced its application to reinstate sales of H20 AI chips in China, validating earlier reports. The company also unveiled the RTX Pro chip, specifically engineered for the Chinese market.

Malaysia's Measures Against Chip Smuggling

July 14: Malaysia declared the implementation of trade permits for U.S.-manufactured AI chips. This new regulation requires individuals and businesses to provide the Malaysian government with a 30-day advance notice before exporting any U.S. AI chips.

June

Intel Announces New Leadership Roles

June 18: Intel has revealed four new appointments to key leadership positions. These changes are intended to facilitate the company’s transition towards a more engineering-focused operational model. The announcement included the designation of a new chief revenue officer, alongside the recruitment of several prominent engineering professionals.

Workforce Reduction at Intel Foundry

June 17: A substantial reduction in workforce is planned at Intel Foundry, commencing in July. The company anticipates eliminating between 15% and 20% of employees within this specific business unit. This action follows earlier reports from April and aligns with CEO Lip-Bu Tan’s stated objective of streamlining the organizational structure.

Nvidia Adjusts Financial Outlook Regarding China

June 13: Nvidia does not foresee an immediate alteration to U.S. restrictions on the export of advanced AI chips. Following financial impacts resulting from new licensing requirements for its H20 AI chips, CEO Jensen Huang indicated that future revenue and profit projections will exclude the Chinese market.

AMD Expands Capabilities with Untether AI Acquisition

June 6: AMD has executed another acquisition, strategically focused on acquiring specialized expertise. The company has acquired the team from Untether AI, a developer of AI inference chips, as it continues to broaden its portfolio of AI solutions.

AMD Targets Nvidia's Position in AI Hardware

June 4: AMD has continued to invest in strategic acquisitions. The company completed the purchase of Brium, an AI software optimization startup that assists in adapting AI software for diverse hardware platforms. Given the prevalence of AI software designed specifically for Nvidia hardware, this acquisition is a logical step.

May

Nvidia Reports Impact of Chip Export Regulations

May 28: Nvidia disclosed that U.S. licensing stipulations concerning its H20 AI chips resulted in $4.5 billion in charges during the first quarter. The company anticipates a further $8 billion reduction in Nvidia’s revenue for the second quarter due to these regulations.

AMD Completes Acquisition of Enosemi

May 28: AMD initiated a series of acquisitions with the purchase of Enosemi, a startup specializing in silicon photonics. Enosemi’s technology, utilizing light photons for data transmission, is gaining prominence within the semiconductor industry.

Escalating Trade Concerns Between China and the U.S.

May 21: China’s Commerce Secretary expressed disapproval of U.S. guidance issued on May 13th. This guidance cautioned U.S. firms that utilizing Huawei’s AI chips globally would constitute a breach of U.S. chip export controls. A statement was released threatening legal repercussions for enforcing these restrictions.

Intel Considers Divestment of Non-Core Divisions

May 20: Intel CEO Lip-Bu Tan appears to be swiftly implementing his strategy to separate Intel’s non-essential business segments. The semiconductor manufacturer is reportedly seeking to sell its Networking and Edge units. These units, which produce chips for telecommunications infrastructure, generated $5.4 billion in revenue for the company in 2024.

Biden Administration’s AI Diffusion Rule Withdrawn

May 13: The U.S. Department of Commerce formally revoked the Artificial Intelligence Diffusion Rule shortly before its scheduled implementation. The DOC indicated plans to release revised guidance in the future. Currently, utilizing Huawei’s Ascend AI chips anywhere constitutes a violation of U.S. export regulations.

Policy Shift at the Last Moment

May 7: With the “Framework for Artificial Intelligence Diffusion” slated to take effect, a change in course was announced. Reports from sources like Axios and Bloomberg indicate the administration will not enforce the restrictions as originally planned for May 15th. Instead, development of an alternative framework is underway.

April

Anthropic Strengthens Position on Chip Export Controls

April 30: Anthropic reaffirmed its support for restrictions on the export of U.S.-manufactured chips. This included adjustments to the Framework for Artificial Intelligence Diffusion, such as increased limitations for Tier 2 nations and a commitment of resources to enforcement efforts.

In response, a representative from Nvidia stated that American companies should prioritize innovation and overcome challenges, rather than making unsubstantiated claims about the illicit transport of sensitive electronics through unconventional means.

Intel Announces Workforce Reduction

April 22: Prior to its first-quarter earnings announcement, Intel revealed plans to reduce its workforce by over 21,000 employees. This restructuring aims to simplify management processes, a long-standing objective of CEO Lip-Bu Tan, and refocus the company’s engineering capabilities.

Expanded Restrictions on Chip Exports by the U.S. Government

April 15: Nvidia disclosed in a Securities and Exchange Commission (SEC) filing that its H20 AI chip is now subject to export licensing requirements. The company anticipates approximately $5.5 billion in associated charges during the first quarter of its 2026 fiscal year.

The H20 represents Nvidia’s most advanced AI chip that remains eligible for export to China under certain conditions. Both TSMC and Intel reported comparable expenses during the same period.

Nvidia CEO Reportedly Engages with Former President Trump

April 9: Reports indicated that Nvidia’s CEO, Jensen Huang, attended a dinner at Donald Trump’s Mar-a-Lago resort. NPR suggested that Huang may have secured an exemption for Nvidia’s H20 AI chips from export restrictions in exchange for investing in AI data centers within the United States.

Potential Collaboration Between Intel and TSMC

April 3: Sources suggest that Intel and TSMC have reached a preliminary agreement to establish a joint chipmaking venture. This venture would oversee Intel’s manufacturing facilities, with TSMC holding a 20% ownership stake.

Both companies declined to provide official comments or confirmation. Should this agreement not materialize, it could serve as an indicator of future potential collaborations within the industry.

Intel Initiates Strategic Realignment

April 1: CEO Lip-Bu Tan swiftly implemented changes following his appointment. Intel announced its intention to divest non-core assets to enhance its strategic focus.

Furthermore, the company declared plans to introduce new products, including customized semiconductors tailored to specific customer needs.

March

New CEO Appointed at Intel

March 12: Intel revealed the appointment of Lip-Bu Tan, a seasoned industry professional and previous board member, to the position of Chief Executive Officer, effective March 18th.

Upon accepting the role, Tan communicated his vision for Intel, emphasizing a renewed focus on engineering principles throughout the organization.

Further Details on the Leadership Transition

Tan’s return signifies a strategic shift for the technology giant.

He previously served on Intel’s board and brings a wealth of experience to the role.

The company anticipates that his leadership will prioritize technological innovation and development.

Key Takeaways from the Announcement

• Leadership Change: A new CEO has been designated for Intel.
• Effective Date: Lip-Bu Tan assumed the CEO position on March 18th.
• Strategic Focus: Intel will operate as an “engineering-focused company” under Tan’s direction.

This appointment is expected to influence Intel’s future direction and competitive standing within the semiconductor industry.

February

Delay Announced for Intel's Ohio Facility

Initial plans indicated Intel would commence operations at its new chip fabrication plant in Ohio within the current year. However, construction on the facility has been slowed for a second time this February. The anticipated completion of this $28 billion semiconductor project is now projected for 2030, with a potential operational launch in 2031.

Legislators Advocate for Expanded Chip Export Controls

On February 3rd, a bipartisan group of U.S. senators, including Elizabeth Warren from Massachusetts and Josh Hawley of Missouri, addressed a letter to Howard Lutnick, nominee for Commerce Secretary. They requested a strengthening of restrictions concerning the export of advanced AI chips.

The correspondence specifically highlighted Nvidia’s H20 AI chips, noting their utilization in the development of DeepSeek’s R1 model, designed for advanced reasoning capabilities.

January

DeepSeek Launches Open-Source “Reasoning” Model

January 27: The release of the open version of the R1 “reasoning” model by Chinese AI company DeepSeek generated significant attention within Silicon Valley. Although not directly related to semiconductor manufacturing, the considerable concern triggered across both the AI and semiconductor sectors is continuing to impact the chip industry.

Biden Administration Announces Chip Export Regulations

January 13: In the final week of his presidency, Joe Biden put forward extensive new export controls concerning AI chips manufactured in the United States. This initiative established a tiered system to regulate the quantity of U.S. chips that could be exported to various nations. Tier 1 nations were exempt from limitations, while Tier 2 faced initial purchase caps, and Tier 3 experienced even more stringent restrictions.

Anthropic CEO Advocates for Continued Chip Export Controls

January 6: Dario Amodei, co-founder and CEO of Anthropic, authored an opinion piece with The Wall Street Journal. He expressed support for the current AI chip export controls, citing them as a contributing factor to the relative lag of China’s AI market compared to that of the United States. Amodei also urged the incoming administration of Donald Trump to implement further restrictions and address existing loopholes.

This article was first published on May 9, 2025, and receives regular updates with the latest information.