The U.S. semiconductor industry has navigated a year of high-stakes shifts, strategic pivots, and regulatory twists—all against the backdrop of the global “AI race” that the U.S. is determined to lead. From Intel’s leadership overhaul under Lip-Bu Tan, tasked with reviving the legacy tech giant, to former President Joe Biden’s last-ditch proposal for sweeping AI chip export rules (which never materialized), every development has carried weight for the industry’s trajectory. Below is a detailed breakdown of key events shaping the U.S. semiconductor market in 2025 so far.

August

Nvidia Posts Record-Breaking Quarterly Results

August 27: Despite broader turbulence in the semiconductor sector, Nvidia continued its streak of dominance. The company reported all-time high sales for Q2 2025, with its data center business—critical to AI infrastructure—leading the charge: revenue in this segment surged 56% year-over-year, underscoring Nvidia’s unshakable position in the AI chip market.

U.S. Government Takes a 10% Stake in Intel

August 22: The U.S. government announced a strategic move to convert existing grants to Intel into a 10% equity stake. The deal included a safeguard: Intel would face penalties if its ownership in its foundry program dropped below 50%, reflecting the government’s interest in securing domestic semiconductor manufacturing capabilities.

SoftBank Invests $2 Billion in Intel

August 18: Japanese conglomerate SoftBank revealed a $2 billion investment in Intel, with CEO Masayoshi Son framing the deal as “strategic.” The announcement came amid swirling rumors that the U.S. government was poised to take its own stake in Intel, signaling broader confidence in the chipmaker’s turnaround efforts.

Nvidia and AMD Secure Licenses to Sell AI Chips in China

August 12: After months of negotiations, Nvidia and AMD struck agreements with the U.S. government to obtain licenses for selling AI chips in China. A key condition: both companies agreed to pay the U.S. government 15% of their revenue from chip sales in the Chinese market, balancing commercial interests with regulatory demands.

Intel CEO Lip-Bu Tan Meets with President Trump

August 11: Lip-Bu Tan traveled to the White House for a meeting with President Donald Trump. The discussion focused on Tan’s industry background and Intel’s role in advancing the U.S. goal of reshoring semiconductor manufacturing. Both sides described the conversation as “productive,” highlighting alignment on domestic tech priorities.

Trump Calls for Intel CEO Lip-Bu Tan’s Resignation

August 7: President Trump took to Truth Social to demand Lip-Bu Tan’s “immediate resignation” over alleged “conflicts of interest”—though he provided no details on the claims. The move followed a letter from Republican Senator Tom Cotton to Intel’s board the previous day, questioning Tan’s ties to China.

Trump Teases Tariffs for the Semiconductor Industry

August 5: In an interview with CNBC’s Squawk Box, President Trump announced plans to unveil tariffs on the semiconductor sector “as soon as next week.” No specifics on tariff rates or scope were shared, and as of September 5, no such tariffs have been formally announced.

July

Intel Spins Off Its Network and Edge Business Unit

July 25: One day after its Q2 earnings call, Intel confirmed it would spin out its Network and Edge group—a division that makes chips for the telecom industry. The unit generated $5.8 billion in revenue for Intel in 2024, with the spinoff aimed at streamlining the company’s focus on core semiconductor operations.

Intel Scales Back Manufacturing and Cuts Workforce

July 24: Intel announced a series of efficiency measures: it would abandon previously planned manufacturing projects in Germany and Poland, consolidate test operations, and reduce its global workforce to approximately 75,000 employees by the end of 2025. The moves were part of CEO Lip-Bu Tan’s push to trim costs and refocus on engineering.

Trump Administration Unveils AI Action Plan

July 23: The Trump administration released its long-awaited AI Action Plan, paired with several executive orders. While the plan emphasized the need for U.S. chip export controls and allied coordination on tech policy, it lacked concrete details on how restrictions would be implemented—leaving industry players waiting for clarity.

UAE-Nvidia AI Chip Deal Put on Hold Over Security Fears

July 17: A landmark May deal (facilitated by the Trump administration) that would have seen the United Arab Emirates (UAE) buy billions of dollars’ worth of Nvidia AI chips was reportedly paused. The hold came as the U.S. raised national security concerns, fearing the chips could be smuggled from the UAE to China.

Nvidia’s China Sales Tied to Rare Earth Trade Talks

July 16: A day after Nvidia and AMD received approval to resume selling select AI chips to China, U.S. Commerce Secretary Howard Lutnick revealed the decision was linked to ongoing trade discussions with China over rare earth elements—critical materials for semiconductor production.

Nvidia Seeks Approval to Sell Chips in China, Unveils New Model

July 14: Nvidia filed an application to restart sales of its H20 AI chips in China, confirming rumors from earlier weeks. The company also announced the RTX Pro, a new chip specifically designed to comply with U.S. export rules and target the Chinese market.

Malaysia Introduces Permits to Curb Chip Smuggling

July 14: Malaysia launched a new trade permit system for U.S.-made AI chips. Under the rules, individuals and businesses must give the Malaysian government 30 days’ notice before exporting any U.S.-origin AI chips, aiming to prevent unauthorized diversion to third countries.

June

Intel Names New Leadership to Prioritize Engineering

June 18: Intel announced four key leadership appointments, including a new chief revenue officer and several high-profile engineering hires. The moves were framed as steps to reinstate Intel as an “engineering-first company”—a core goal of CEO Lip-Bu Tan.

Intel Plans Layoffs for 15–20% of Foundry Staff

June 17: Intel revealed it would cut 15–20% of employees in its Intel Foundry business unit starting in July. The layoffs, which had been rumored since April, aligned with Tan’s efforts to flatten the organization and reduce costs in underperforming segments.

Nvidia Excludes China from Future Financial Forecasts

June 13: Citing ongoing uncertainty around U.S. AI chip export restrictions, Nvidia CEO Jensen Huang announced the company would no longer include the Chinese market in its revenue and profit projections. The decision followed financial hits from licensing requirements on its H20 chips.

AMD Acqui-Hires Untether AI’s Team

June 6: AMD expanded its AI capabilities through an acqui-hire of the team behind Untether AI, a startup focused on AI inference chips. The move was part of AMD’s broader push to compete with Nvidia in the AI hardware space.

AMD Buys Brium to Optimize AI Software Compatibility

June 4: Continuing its acquisition spree, AMD purchased Brium, a startup that helps companies adapt AI software to work with diverse hardware. The deal addressed a key challenge: much of today’s AI software is designed for Nvidia chips, and Brium’s tech will help AMD better integrate its hardware into existing workflows.

May

Nvidia Reports $4.5B Hit from Chip Export Restrictions

May 28: Nvidia disclosed that U.S. licensing requirements on its H20 AI chips cost the company $4.5 billion in charges during Q1 2025. The company also warned of an additional $8 billion revenue impact in Q2—highlighting the financial toll of export rules.

AMD Acquires Silicon Photonics Startup Enosemi

May 28: AMD kicked off its 2025 acquisition streak with the purchase of Enosemi, a startup specializing in silicon photonics (tech that uses light to transmit data). The deal reflected growing industry interest in photonics as a way to boost chip performance.

U.S.-China Tensions Flare Over Huawei Chip Rules

May 21: China’s Commerce Secretary criticized a U.S. guidance issued May 13, which warned that using Huawei’s AI chips “anywhere in the world” violated U.S. export rules. The secretary threatened legal action against anyone enforcing the restriction, escalating trade tensions.

Intel Explores Selling Network and Edge Units

May 20: Reports emerged that Intel was looking to offload its Network and Edge business units— which generated $5.4 billion in 2024 revenue by making telecom-focused chips. The move aligned with CEO Lip-Bu Tan’s plan to spin out non-core assets and refocus on key semiconductor lines.

Biden’s AI Diffusion Rule Is Rescinded

May 13: Days before it was set to take effect, the U.S. Department of Commerce formally revoked former President Biden’s Artificial Intelligence Diffusion Rule. The agency said it would issue new guidance later and reminded companies that using Huawei’s Ascend AI chips globally violates U.S. export laws.

Trump Administration Ditches Biden’s AI Framework

May 7: Media outlets (including Axios and Bloomberg) reported the Trump administration would not enforce Biden’s “Framework for Artificial Intelligence Diffusion” when it was set to launch May 15. Instead, the administration said it would develop its own regulatory framework for AI chips.

April

Anthropic Pushes for Tougher Chip Export Restrictions

April 30: Anthropic doubled down on its support for stricter U.S. chip export rules, proposing tweaks like expanded restrictions on Tier 2 countries and more resources for enforcement. Nvidia pushed back, with a spokesperson stating: “American firms should focus on innovation, not spread unfounded claims that sensitive electronics are smuggled via ‘baby bumps’ or ‘live lobsters.’”

Intel Announces Plans to Cut 21,000+ Jobs

April 22: Ahead of its Q1 earnings call, Intel revealed it would lay off over 21,000 employees. The cuts were intended to streamline management and reinvest in engineering—priorities CEO Lip-Bu Tan had emphasized since taking office.

Trump Administration Expands Export Rules for Nvidia’s H20 Chips

April 15: In an SEC filing, Nvidia disclosed that its H20 AI chip (the most advanced model it could still export to China) was now subject to U.S. export licensing. The company projected $5.5 billion in related charges for Q1 2026, with TSMC and Intel reporting similar expenses that week.

Nvidia’s Jensen Huang Meets Trump at Mar-a-Lago

April 9: Reports emerged that Nvidia CEO Jensen Huang attended a dinner at Donald Trump’s Mar-a-Lago resort. NPR noted the meeting may have helped spare Nvidia’s H20 chips from harsher export restrictions, in exchange for Nvidia’s commitment to invest in U.S.-based AI data centers.

Intel and TSMC Discuss Joint Chipmaking Venture

April 3: Rumors surfaced of a tentative agreement between Intel and TSMC to launch a joint chipmaking venture. Under the plan, TSMC would take a 20% stake in the venture, which would operate Intel’s manufacturing facilities. Neither company confirmed or commented on the talks, but the deal hinted at potential industry collaboration to boost domestic production.

Intel Unveils Spinoff Plans and Custom Chip Initiative

April 1: Just weeks after joining Intel, CEO Lip-Bu Tan announced two key moves: the company would spin out non-core assets to focus on core operations, and it would launch a new line of custom semiconductors for clients. The changes marked the start of Intel’s turnaround strategy.

March

Intel Names Lip-Bu Tan as New CEO

March 12: Intel tapped industry veteran and former board member Lip-Bu Tan to take over as CEO on March 18. Tan pledged to refocus Intel as an “engineering-focused company,” a shift aimed at reversing the chipmaker’s recent struggles.

February

Intel’s Ohio Chip Plant Delayed Until 2030 (or Later)

February 28: Intel pushed back construction timelines for its $28 billion Ohio chip fabrication plant—for the second time in 2025. Originally set to open in 2025, the project will now not finish construction until 2030, with operations potentially starting in 2031.

Senators Urge Tougher AI Chip Export Restrictions

February 3: Senators Elizabeth Warren (D-Mass) and Josh Hawley (R-Mo) sent a letter to Commerce Secretary Nominee Howard Lutnick, calling on the Trump administration to expand AI chip export limits. The letter specifically highlighted Nvidia’s H20 chips, which were used to train DeepSeek’s R1 “reasoning” model.

January

DeepSeek’s Open R1 Model Rattles Silicon Valley

January 27: Chinese AI startup DeepSeek released the open-source version of its R1 “reasoning” model, sparking alarm in the U.S. AI and semiconductor industries. While not a semiconductor-specific development, the move fueled debates about U.S. tech competitiveness and export control effectiveness.

Biden Proposes Last-Minute AI Chip Export Rules

January 13: With one week left in office, former President Biden unveiled a proposal for sweeping U.S. AI chip export restrictions. The plan created a three-tier system: Tier 1 countries faced no limits, Tier 2 countries got their first chip purchase caps, and Tier 3 countries faced additional restrictions. The rules were never implemented.

Anthropic’s Dario Amodei Endorses Chip Export Controls

January 6: Anthropic co-founder and CEO Dario Amodei co-wrote a Wall Street Journal op-ed defending existing U.S. AI chip export controls, arguing they had kept China’s AI market behind the U.S. He urged incoming President Trump to tighten restrictions further and close loopholes that let Chinese firms access U.S. chips.