On Thursday, U.S. President Donald J. Trump demanded the resignation of Intel’s CEO Lip-Bu Tan, citing “highly conflicted” ties to Chinese firms. The demand follows a report that revealed Tan’s investments in hundreds of Chinese companies, some linked to the Chinese military.
Trump’s statement came after U.S. Senator Tom Cotton (R-AR) sent a letter to Intel’s board chair raising concerns over Tan’s connections to China and a criminal case involving his previous company, Cadence Design. “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem. Thank you for your attention to this problem!” President Trump wrote in a post on Truth Social, leading Intel shares to drop by approximately 4 percent in premarket trading.
Intel, a major player in U.S. chip manufacturing, received nearly $20 billion in federal grants under the 2022 CHIPS and Science Act to bolster domestic semiconductor production. The company stated that both Intel and Tan “are deeply committed to the national security of the U.S. and the integrity of our role in the U.S. defense ecosystem.” Intel also noted it would address the concerns raised by Senator Cotton.
Tan assumed the role of CEO in March, succeeding Pat Gelsinger. Under his leadership, Intel has aimed to cut costs by reducing its workforce by 22 percent and halting construction on several planned manufacturing sites. Despite these efforts, Intel has struggled to regain its position in the semiconductor industry, losing ground to Taiwan’s TSMC and falling behind in the artificial intelligence chip market dominated by Nvidia.
