Introduction to the US Semiconductor Industry
The US semiconductor industry has experienced a tumultuous year, with significant developments that could impact the country’s position in the "AI race." The industry plays a crucial role in this race, and recent events are worth paying attention to. From Intel’s new CEO to proposed AI chip export rules, the industry has seen substantial changes.
Recent Developments
Here’s a look at what’s happened since the beginning of the year:
May: A Last-Minute Reversal
On May 7, the Trump administration announced that it would not enforce the restrictions on AI chip exports as previously planned. Instead, the administration is working on its own framework. This decision came just a week before the "Framework for Artificial Intelligence Diffusion" was set to go into place.
April: Anthropic Doubles Down on Chip Export Restrictions
On April 30, Anthropic expressed its support for restricting US-made chip exports, including tweaks to the Framework for Artificial Intelligence Diffusion. The company proposed imposing further restrictions on Tier 2 countries and dedicating resources to enforcement. In response, an Nvidia spokesperson argued that American firms should focus on innovation rather than restricting exports.
Planned Layoffs at Intel
On April 22, Intel announced plans to lay off over 21,000 employees. The layoffs aim to streamline management and help rebuild the company’s engineering focus.
The Trump Administration Further Restricts Chip Exports
On April 15, Nvidia’s H20 AI chip was hit with an export licensing requirement. The company expects $5.5 billion in charges related to this new requirement in the first quarter of its 2026 fiscal year. TSMC and Intel reported similar expenses the same week.
Nvidia Appears to Talk Its Way Out of Further Chip Exports
On April 9, Nvidia’s CEO Jensen Huang attended dinner at Donald Trump’s Mar-a-Lago resort. Reports suggest that Huang may have been able to spare Nvidia’s H20 AI chips from export restrictions by agreeing to invest in AI data centers in the US.
An Alleged Agreement Between Intel and TSMC
On April 3, Intel and TSMC allegedly reached a tentative agreement to launch a joint chipmaking venture. The joint venture would operate Intel’s chipmaking facilities, with TSMC holding a 20% stake.
Intel Spins Off Non-Core Assets, Announces New Initiative
On April 1, Intel announced that it would spin off non-core assets to focus on its core business. The company also launched new products, including custom semiconductors for customers.
Earlier Developments
March: Intel Names a New CEO
On March 12, Intel announced that industry veteran Lip-Bu Tan would return to the company as CEO. Tan stated that Intel would be an "engineering-focused company" under his leadership.
February: Intel’s Ohio Chip Plant Gets Delayed Again
On February 28, Intel slowed down construction on its Ohio chip plant for the second time. The $28 billion semiconductor project is now expected to wrap up construction in 2030 and may not open until 2031.
Senators Call for More Chip Export Restrictions
On February 3, US senators wrote a letter to Commerce Secretary Nominee-Designate Howard Lutnick, urging the Trump administration to further restrict AI chip exports. The letter specifically referred to Nvidia’s H20 AI chips.
January: DeepSeek Releases Its Open "Reasoning" Model
On January 27, Chinese AI startup DeepSeek released the open version of its R1 "reasoning" model. This release caused alarm in the AI and semiconductor industries, with ripple effects on the chip industry.
Joe Biden’s Executive Order on Chip Exports
On January 13, former President Joe Biden proposed sweeping new export restrictions on US-made AI chips. The order created a three-tier structure that determined how many US chips could be exported to each country.
Anthropic’s Dario Amodei Weighs In on Chip Export Restrictions
On January 6, Anthropic co-founder and CEO Dario Amodei endorsed existing AI chip export controls and called on incoming president Donald Trump to impose further restrictions.
Conclusion
The US semiconductor industry has experienced significant developments in recent months, with a focus on AI chip exports and restrictions. The industry’s future is uncertain, with ongoing discussions about export controls, joint ventures, and investments in AI data centers. As the industry continues to evolve, it’s essential to stay informed about the latest developments and their potential impact on the US position in the "AI race."
