Key moments in the U.S. semiconductor industry in 2025: Intel's restructuring, Nvidia's China push, and shifting AI export policies

The U.S. semiconductor industry faced a dynamic and challenging year in 2025, shaped by strategic shifts, regulatory changes, and geopolitical tensions. Key developments unfolded across months, reflecting the sector’s pivotal role in the global AI race. In January, former President Joe Biden proposed sweeping export restrictions on AI chips, aiming to limit technology transfers to China. His framework introduced a three-tier system for regulating chip exports, though it never took effect before his term ended. Shortly after, Chinese startup DeepSeek released an open-source reasoning model, sparking alarm in Silicon Valley and intensifying concerns about AI competition. By March, Intel appointed Lip-Bu Tan as CEO, signaling a focus on engineering and restructuring. Tan emphasized streamlining operations and reinvigorating the company’s core semiconductor business. This came as Intel faced delays in its Ohio chip plant, now projected to complete construction by 2031. April brought heightened tensions over export controls. The Trump administration imposed new licensing requirements on Nvidia’s H20 AI chips, prompting the company to file for approval to resume sales in China. Meanwhile, Intel announced plans to lay off over 21,000 employees, targeting its foundry division to cut costs and refocus on engineering. Reports also suggested a potential joint venture between Intel and TSMC, though both denied confirmation. May saw the Biden-era AI Diffusion Rule abandoned, with the Commerce Department rescinding it ahead of its implementation. The Trump administration, however, delayed its own export framework, citing ongoing negotiations. Concurrently, China criticized U.S. export policies, threatening legal action against enforcement of restrictions on Huawei’s chips. AMD expanded its AI ambitions by acquiring Enosemi, a silicon photonics startup, and later Brium, an AI software optimization firm, to bolster its hardware ecosystem. June marked Intel’s leadership changes, with new appointments aimed at reengineering its operations. The company also initiated layoffs in its foundry division, aligning with Tan’s vision to reduce workforce by 15–20%. Nvidia, meanwhile, faced financial setbacks due to export restrictions, announcing it would exclude China from revenue forecasts. July brought further regulatory and operational shifts. The Trump administration’s AI Action Plan highlighted export controls but lacked specifics. A UAE deal to purchase Nvidia AI chips was reportedly paused over concerns about smuggling to China. Nvidia sought to restart H20 sales in China, while Malaysia introduced 30-day export permits for U.S.-made AI chips. Intel also scaled back manufacturing projects in Germany and Poland, reducing its workforce to 75,000 by year-end. Throughout the year, the semiconductor sector remained central to U.S. efforts to maintain technological leadership. Intel’s restructuring, AMD’s acquisitions, and Nvidia’s regulatory challenges underscored the industry’s adaptability amid shifting policies. Meanwhile, export controls and geopolitical rivalries continued to shape the competitive landscape, with companies navigating compliance, innovation, and market demands. The year highlighted the interplay between corporate strategy, government policy, and global AI development, setting the stage for future industry dynamics.