The U.S. semiconductor industry has experienced a whirlwind in the first half of 2025, with significant shifts and strategic moves that have reshaped the landscape of this critical sector. As the U.S. forges ahead in the AI race, the semiconductor industry has been at the forefront of this technological sprint, with Intel, Nvidia, and AMD leading the charge.
In a bid to reestablish itself as an engineering-first company, Intel made headlines on June 18 with the announcement of four new leadership appointments. This strategic move came on the heels of the company's plan to streamline its operations, which included the significant layoff of Intel Foundry staff, affecting up to 20% of the unit's workforce starting in July.
Nvidia, grappling with the financial repercussions of U.S. licensing requirements on its H20 AI chips, took a bold step on June 13 by excluding the Chinese market from its future revenue and profit forecasts. This decision underscored the impact of export restrictions on the company's bottom line, with an expected $8 billion hit to revenue in Q2.
AMD, on the other hand, expanded its AI capabilities with the acqui-hire of Untether AI on June 6, a team known for developing AI inference chips. The company further bolstered its AI software optimization efforts with the acquisition of Brium, a startup specializing in retrofitting AI software to work with various hardware.
Financial setbacks were not exclusive to Nvidia, as the company reported a $4.5 billion charge in Q1 due to U.S. licensing requirements on its H20 AI chips. This move by the U.S. government to restrict AI chip exports had far-reaching implications, with China's Commerce Secretary responding with a threat of legal action against enforcers of these restrictions.
Intel's strategic realignment continued with CEO Lip-Bu Tan's plan to spin out non-core business units, including its networking and edge units, which contributed $5.4 billion to the company's 2024 revenue. This move was part of a broader effort to focus on core competencies and streamline operations.
The U.S. Department of Commerce's decision to rescind the Artificial Intelligence Diffusion Rule on May 13, just days before it was set to take effect, marked a significant policy shift. The department indicated plans to issue new guidance, emphasizing the ongoing nature of policy development in this dynamic industry.
Anthropic, doubling down on its support for restricting U.S.-made chip exports, proposed further restrictions on Tier 2 countries and increased enforcement resources. This stance was met with criticism from Nvidia, highlighting the contentious nature of export controls and their impact on innovation.
Intel's planned layoffs of over 21,000 employees, announced on April 22, were a stark indicator of the company's commitment to streamlining management and rebuilding its engineering focus. This move was part of a broader trend of restructuring within the industry.
Nvidia's H20 AI chip faced an export licensing requirement on April 15, with the company expecting $5.5 billion in charges related to this new requirement in the first quarter of its 2026 fiscal year. This development underscored the escalating tensions and financial burdens faced by companies operating in this space.
The year began with the former president Joe Biden proposing sweeping new export restrictions on U.S.-made AI chips, creating a three-tier structure that determined export allowances to various countries. This proposal, along with ongoing policy debates and industry shifts, set the stage for a year of significant change and strategic maneuvering within the U.S. semiconductor industry.