The U.S. semiconductor industry has faced a turbulent year, playing a pivotal role in the global AI race. From leadership changes to shifting export policies, the sector has seen significant developments. Here’s a detailed look at the key events of 2025.
**July**
Intel scaled back its manufacturing operations, abandoning projects in Germany and Poland while consolidating test operations. The company also announced plans to reduce its workforce to around 75,000 employees by year-end.
The Trump administration unveiled its AI Action Plan, emphasizing chip export controls but lacking concrete details. Meanwhile, a major UAE deal to purchase Nvidia AI chips was put on hold due to national security concerns over potential smuggling to China.
Nvidia resumed sales of certain AI chips to China, a move tied to U.S.-China trade discussions on rare earth elements. Malaysia introduced trade permits for U.S.-made AI chips, requiring 30-day advance notice for exports.
**June**
Intel appointed new leadership to refocus on engineering, including a chief revenue officer. The company also announced layoffs affecting up to 20% of its Intel Foundry staff as part of restructuring efforts.
Nvidia excluded China from its revenue forecasts following financial losses from export restrictions. AMD expanded its AI capabilities by acquiring the team behind Untether AI and software optimization startup Brium.
**May**
Nvidia reported a $4.5 billion loss due to licensing requirements on its H20 AI chips, with an expected $8 billion revenue hit in Q2. AMD acquired silicon photonics startup Enosemi to bolster its AI ambitions.
Tensions flared between the U.S. and China over Huawei’s AI chips, with China threatening legal action against U.S. export restrictions. Intel explored selling its networking and edge units to streamline operations.
The Biden administration’s AI Diffusion Rule was rescinded, with the Commerce Department planning new guidance. The Trump administration reversed course on enforcing the rule, opting to develop its own framework.
**April**
Anthropic supported stricter chip export controls, prompting backlash from Nvidia. Intel planned layoffs of over 21,000 employees to refocus on engineering.
Nvidia’s H20 AI chip faced new export licensing requirements, costing the company $5.5 billion in charges. CEO Jensen Huang’s meeting with Donald Trump reportedly spared the H20 from further restrictions.
Intel and TSMC were rumored to be forming a joint chipmaking venture. Intel also announced plans to spin off noncore assets under new CEO Lip-Bu Tan.
**March**
Intel appointed Lip-Bu Tan as CEO, signaling a shift toward engineering-focused leadership.
**February**
Intel delayed its Ohio chip plant to 2030, marking the second construction slowdown. U.S. senators urged stricter AI chip export controls, citing concerns over China’s advancements.
**January**
Chinese AI startup DeepSeek released its open “reasoning” model, causing industry-wide alarm. Outgoing President Joe Biden proposed sweeping AI chip export restrictions, categorizing countries into three tiers.
Anthropic’s CEO endorsed existing export controls and called for tighter restrictions under the Trump administration.
This timeline highlights the dynamic and often contentious developments shaping the semiconductor industry in 2025.