Former U.S. President Donald Trump has called for the immediate resignation of Intel’s new CEO, Lip-Bu Tan, citing “highly conflicted” ties to Chinese firms, including some linked to the Chinese military.
Tan has reportedly invested over $200 million in Chinese chip and manufacturing companies, according to an earlier Reuters investigation.
Trump’s comments followed a letter from Republican Senator Tom Cotton questioning Tan’s connections and his past leadership at Cadence Design, which recently pleaded guilty and agreed to pay $140 million over unauthorized sales to a Chinese military university.
“The CEO of Intel is highly CONFLICTED and must resign immediately,” Trump posted on Truth Social. Intel shares fell 3% following the statement.
Tan defended his leadership, saying he shares the administration’s commitment to U.S. national and economic security, and noted that Intel’s board supports his vision to revive the company, which has struggled to compete with TSMC, Nvidia, and AMD in chip manufacturing and AI.
Intel is a central part of U.S. efforts to boost domestic chip production and has received $8 billion in subsidies under the CHIPS Act. Tan’s appointment in 2024 came after the early exit of former CEO Pat Gelsinger, whose turnaround plan fell short of expectations.
While some analysts say Tan’s background raises concerns under Trump’s “America First” stance, others warn against political interference in corporate leadership.
Intel maintains it is aligning its strategy with national interests and is engaging with the administration to clarify Tan’s position. However, questions remain over the extent of his divestments from Chinese entities, as many investments were still listed as active earlier this year.
Tan, a Malaysian-born Chinese American, has scaled back Intel’s global expansion plans and workforce in a bid to stabilize operations. However, delays and quality issues in chip production have hampered progress, including a key Ohio factory now pushed back to 2030–2031.
