The US semiconductor industry has faced a rollercoaster year in 2025, with significant shifts in leadership, trade policies, and corporate strategies. As the AI race intensifies, the industry's fortunes are closely tied to the nation's technological edge. Here's a retrospective look at the pivotal events that have shaped the industry's landscape this year.
In a strategic move, Intel appointed Lip-Bu Tan as CEO, marking a new era for the company. Tan's appointment signaled a shift in focus towards revitalizing the company's legacy, as he wasted no time in implementing changes. Meanwhile, the Trump administration unveiled its AI Action Plan, which, while lacking concrete details, emphasized the need for US chip export controls and international coordination.
The industry witnessed a series of announcements and changes in leadership. Intel announced four new leadership appointments aimed at returning the company to its engineering roots. However, the company also faced challenges, with plans to lay off a significant portion of its Intel Foundry staff and consolidate its test operations. Additionally, Intel's construction of its first chip fabrication plant in Ohio was delayed, pushing the completion date to 2030.
On the trade front, the US Commerce Security's decision to allow US companies to sell AI chips in China was tied to ongoing trade discussions regarding rare earth elements. This move followed the green light given to semiconductor firms like Nvidia and AMD to resume selling certain AI chips to China.
Nvidia faced its own set of challenges, with the US licensing requirements on its H20 AI chips costing the company $4.5 billion in charges during Q1. The company expects these requirements to result in an $8 billion hit to its revenue in Q2. In response, Nvidia filed an application to restart sales of H20 AI chips in China and announced the launch of the RTX Pro, a chip specifically designed for the Chinese market.
AMD continued to expand its AI offerings with the acquisition of Untether AI, a team developing AI inference chips, and Brium, an AI software optimization startup. These acquisitions highlight AMD's commitment to rounding out its AI capabilities.
Internationally, Malaysia introduced new restrictions on the export of US-made AI chips, requiring individuals or businesses to give the Malaysian government 30 days' notice before exporting any US AI chips. This move adds another layer of complexity to the global semiconductor trade.
The Biden administration's proposal for sweeping new AI chip export rules created a three-tier structure determining the number of US chips that can be exported to each country. Under this proposal, Tier 1 countries faced no restrictions, Tier 2 countries had a chip purchase limit for the first time, and Tier 3 countries faced additional restrictions.
In conclusion, the US semiconductor industry has experienced a tumultuous year marked by significant changes in leadership, trade policies, and corporate strategies. As the AI race continues, the industry's fortunes remain closely tied to the nation's technological edge, making it a critical sector to watch in the coming years.