The US semiconductor sector is undergoing major shifts this year.
Intel’s new CEO, Lip-Bu Tan, launched layoffs to streamline management and refocus on engineering. The company plans to develop custom semiconductors and introduce new products.
However, its US$28 billion Ohio chip plant faces delays, with completion pushed to 2030 or later.
A rumored joint venture with TSMC, where the Taiwanese giant would buy a 20% stake in Intel’s chipmaking arm, remains unconfirmed.
On the regulatory front, former President Biden implemented new export controls on US-made AI chips. Tier 3 countries now face tighter restrictions, though the Trump administration is still reviewing the framework.
Chipmakers like Nvidia, Intel, and TSMC report financial hits.
Nvidia expects a US$5.5 billion charge due to restrictions affecting its H20 AI chip, currently the most advanced chip it can export to China.
Source – https://www.techinasia.com/news/intel-layoffs-ai-chip-rules-reshape-us-chip-sector