Key Points
- President Trump publicly demanded the immediate resignation of Intel’s new CEO, Lip-Bu Tan.
- The demand is based on Tan’s past investments in Chinese tech firms, some of which are linked to China’s military.
- The news sent Intel’s stock down nearly 3%, adding pressure to the already struggling company.
- Tan’s former company, Cadence Design, recently pleaded guilty to illegally selling tech to a Chinese military university.
U.S. President Donald Trump on Thursday called for the immediate resignation of Intel’s new CEO, Lip-Bu Tan, labeling him “highly conflicted” due to his extensive investment history in Chinese technology firms. The president’s public demand, posted on his Truth Social platform, sent Intel’s stock tumbling nearly 3% and cast a shadow over the struggling American chip giant.
Trump’s call-out came just a day after a U.S. senator questioned Tan’s fitness to lead a company so vital to national security. The concerns stem from a Reuters report in April, which found that Tan had invested at least $200 million in Chinese tech and chip companies, some with links to the Chinese military.
Further complicating matters, Tan’s former company, Cadence Design, recently pleaded guilty to illegally selling products to a Chinese military university.
The timing could not be worse for Intel. The company is already in turmoil, having lost its manufacturing edge to rivals like TSMC and falling far behind in the booming AI chip market. Intel is also a cornerstone of the U.S. government’s plan to boost domestic chipmaking, securing $8 billion in subsidies under the CHIPS Act.
In response to the controversy, an Intel spokesperson said the company and its CEO are deeply committed to U.S. national security. A source had previously told Reuters that Tan had sold off his positions in Chinese firms, but the full extent of those divestments remains unclear.
The president’s intervention is a rare instance of a U.S. leader publicly demanding a CEO’s ouster, sparking debate among investors about the appropriate role of government in corporate leadership.
