The semiconductor industry is once again preparing for a sea change. Former President Donald Trump has threatened to use tariffs on semiconductors and chips. This latest turn of events follows a roller coaster of a year for the industry, which has seen several ups and downs already. If things go well, next week should see an exciting announcement. All of this adds up to a positive and progressive shift in the environment for U.S. hardware and AI companies.
Last month, the Trump administration released its AI Action Plan. This called attention to the increasingly serious need for the United States to impose export controls on semiconductor technology. The plan was lacking in details about the specific types of restrictions that will be put in place. The administration appears to be actively seeking out options to rescind and replace the Biden administration’s AI export regulations. These dangerous regulations were on the books until recently, officially revoked only this past May.
The United States remains the top, but not dominant, competitor in the semiconductor industry. More than 50 percent of all semiconductor companies around the world are located here. The country has faced significant headwinds in its efforts to grow semiconductor manufacturing footprint. As it stands now, that has left the industry smaller in scale than their global competitors. Even in the face of these headwinds, significant strides have been taken to strengthen domestic chip manufacturing thanks in part to the CHIPs Act and other efforts.
Over $53 billion in the CHIPs Act has gone to large corporations such as Intel and Taiwan Semiconductor Manufacturing Company (TSMC). This critical support empowers them to increase domestic large-scale chip manufacturing. This funding helps increase domestic production, making the country more self-sufficient with semiconductor manufacturing. It addresses the dual challenges of intensifying global competition and persistent supply chain disruptions.
The upcoming tariffs would have a devastating effect on U.S. hardware and AI companies. These businesses rely on imported semiconductors to keep their operations running. Industry experts are concerned that these tariffs would increase costs dramatically. They fear that this enforcement action could jolt an already shaky supply chain even more. Companies are learning to cruise through these changes. They need to deal with increasing regulations and fight an uphill battle just to keep their production going.
As 2025 unfolds, a timeline of significant events in the U.S. semiconductor market has been compiled to monitor ongoing developments and market news. We hope this timeline can be a valuable resource for all stakeholders interested in getting up to speed on this fast-moving, dynamic industry’s landscape.