Trump demands Intel CEO resign, alleging conflicts over China ties
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Intel CEO Lip-Bu Tan. Photo: Annabelle Chih/Bloomberg via Getty Images
President Trump on Thursday demanded Intel CEO Lip-Bu Tan resign, following concerns about his reported ties to Chinese companies.
Why it matters: Tan is in the middle of trying to turn Intel around at a time when the government is pushing to bolster the U.S. chip industry.
- It was only six months ago that the Trump administration was reportedly trying to broker a deal with Taiwan's TSMC to run Intel's factories.
What they're saying: "The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem," Trump posted on Truth Social.
Context: The demand comes one day after Sen. Tom Cotton (R-Ark.) sent a letter to Intel's board raising concerns about Tan's purported ties to Chinese companies with links to the Communist Party and the Chinese military.
- Cotton specifically raised the $8 billion grant Intel received under the CHIPS Act and said Tan's China links "raise questions about Intel's ability to fulfill these obligations."
For the record: The company issued a statement late Thursday that suggested Tan wasn't going anywhere.
- "Intel, the board of directors and Lip-Bu Tan are deeply committed to advancing U.S. national and economic security interests and are making significant investments aligned with the president's America First agenda," the statement said.
Flashback: Intel named Tan CEO in March.
- Late last month, the company reported better revenue than expected in his early months on the job, though he also slashed factory construction plans.
What they're saying: "Intel's underperformance reflects the company's challenges and execution by its past CEOs—not the leadership of current CEO Lip-Bu Tan," Gabelli Funds portfolio manager Hendi Susanto said in a note.
- "Given Trump's history and past remarks, his call for CEO Lip-Bu Tan to resign shouldn't be taken at face value or interpreted too literally."
đź’ Thought bubble: As Axios Pro Rata's Dan Primack notes, Tan's ties to China are long-standing and well-known.
- He previously led Cadence Design Systems and is a longtime venture capitalist known for focusing on cross-border investments — including via Walden International, a firm he founded in the 1980s.
- Tan's operation was one of the earliest U.S. venture firms to make a significant number of investments in China. In April 2001, Forbes dubbed Tan the "pioneer of Asia VC."
By the numbers: Intel shares fell 3.1%, on a day chip stocks otherwise rallied after Trump teased significant exemptions to semiconductor tariffs.
Editor's note: This story has been updated with Intel's comment.
