Trump Demands Intel CEO’s Resignation Over China Ties
President Donald Trump has called for the immediate resignation of Intel’s newly appointed CEO, Lip-Bu Tan, citing alleged conflicts of interest that stem from his business ties to Chinese firms.
Trump described Tan as “highly conflicted” and warned that his leadership could jeopardise the future of the American chip giant.
Reuters had, in an earlier report, revealed that Republican Senator Tom Cotton had written to Intel’s board chair, raising concerns over Tan’s past investments and a criminal case involving Cadence Design Systems, a firm Tan previously led.
According to the report, Tan, either personally or through venture funds, is associated with and has invested over $200m in hundreds of Chinese tech firms, including some with reported links to the Chinese military.
While a source told Reuters that Tan had since divested from those interests, Chinese corporate records still list many of the investments as current.
“There is no other solution to this problem,” Trump wrote on his Truth Social platform, triggering a nearly 4% drop in Intel’s shares during U.S. premarket trading.
Tan, who became CEO in March following the removal of Pat Gelsinger, has launched a restructuring plan at Intel aimed at reducing costs.
The strategy includes laying off around 22% of the workforce, bringing headcount down to 75,000 and pausing construction on some new manufacturing plants.
Intel is central to America’s push to revive domestic chip production and reduce its reliance on foreign suppliers.
The company was awarded nearly $20bn under the 2022 CHIPS and Science Act, making it the largest recipient of federal funding to support advanced semiconductor manufacturing in the United States.
An Intel spokesperson defended Tan in a statement, saying the CEO and the company remain fully committed to U.S. national security and to their role in the defense industrial base.
The company also said it would respond to Senator Cotton’s letter in due course.
Once an undisputed leader in global chipmaking, Intel has lost ground in recent years to Taiwan’s TSMC and has struggled to establish itself in the fast-growing artificial intelligence chip sector, now dominated by Nvidia.
Tan’s leadership is seen as pivotal to changing Intel’s fortunes, but Trump’s call has cast a shadow over the company’s efforts to make progress.
His ties to Chinese tech companies raise concerns among U.S. officials who see China as a strategic rival in critical technologies like semiconductors and artificial intelligence.
With Intel receiving billions in federal subsidies, any potential conflict of interest is viewed as a national security risk.
If Tan’s former investments included firms linked to the Chinese military, they could pose threat to America’s interests.
Trump Demands Intel CEO’s Resignation Over China Ties is first published on The Whistler Newspaper
