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Former President Donald Trump has publicly called for the “immediate” resignation of Intel CEO Lip-Bu Tan, citing alleged problematic ties to China.
In a social media statement, Trump described Tan as “highly conflicted,” an apparent reference to investments purportedly linked to companies the U.S. contends are connected to the Chinese military. It is noteworthy that a former president would demand the departure of a corporate executive.
Tan was appointed in March to lead a turnaround at Intel, a pioneering American chipmaker that has recently lagged behind its competitors.
The company has received billions in U.S. government funding as part of a broader initiative to revitalize America’s semiconductor manufacturing sector.
In a statement released Thursday, Intel emphasized its significant U.S. investments, aligning them with Trump’s “America First” agenda.
“Intel, the Board of Directors, and Lip-Bu Tan are deeply committed to advancing US national and economic security interests,” the statement read, adding, “We look forward to our continued engagement with the administration.”
Tan, a naturalized U.S. citizen born in Malaysia and raised in Singapore, is a venture capitalist recognized for his expertise in the semiconductor industry.
In a recent update to investors, he indicated that the firm would scale back its manufacturing investments, including those in the U.S., to align with customer demand. Intel has already eliminated thousands of positions this year as part of an effort to “right-size” the company.
Intel’s shares experienced a decline of over 3% by midday following Trump’s remarks, who has previously criticized the company and is considering increasing tariffs on the chip industry.
“The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem,” Trump wrote.
It is not illegal for Americans to invest in Chinese firms.
However, Washington has increased restrictions since Trump’s first term, as it aims to sever business ties between the U.S. and China in advanced technology, given bipartisan concerns about national security.
Trump’s criticism echoes concerns voiced by Republican Senator Tom Cotton this week in a letter to Intel’s board, stating that Tan’s “associations raise questions about Intel’s ability” to be a “responsible steward of American taxpayer dollars and to comply with applicable security regulations.”
Cotton highlighted Tan’s long-standing role as chief executive of tech firm Cadence Design Systems, which pleaded guilty in July and agreed to pay $140m over U.S. charges that its subsidiary in China repeatedly conducted business with the country’s National University of Defense Technology, violating U.S. export controls.
Tan himself was not indicted.
Earlier this week, Intel defended its relatively new chief executive, stating that Tan and the company were “deeply committed to the national security of the US and the integrity of our role in the US defense ecosystem.”
Industry expert Patrick Moorhead, founder of Moor Insights & Strategy, suggested that Trump might be leveraging the controversy surrounding Tan’s ties to China to exert pressure on Intel regarding another matter. He alluded to potential disputes over Intel’s U.S. investments and reports of a possible partnership with Taiwanese firm TSMC, supported by the White House.
“It’s apparent to me that there was some negotiation amongst the two that Trump didn’t like,” he said. “Trump probably saw, ‘Ok, I’ve got an opportunity to turn up the heat with Intel on this’.”
Trump is known for publicly criticizing business leaders to an extent unprecedented among U.S. presidents. However, even by his standards, demanding the resignation of a private company’s leader is extraordinary.
Moorhead noted that other tech executives targeted by Trump had found ways to “kiss the ring,” citing promises from firms such as Apple and OpenAI to make substantial U.S. investments.
“Intel probably misread the room on how important it was to get in and be visible with the White House,” he said.
Responding to criticism that Trump had overstepped, the White House told the BBC: “President Trump remains fully committed to safeguarding our country’s national and economic security. This includes ensuring that iconic American companies in cutting-edge sectors are led by men and women who Americans can trust.”
Tan’s ties to China were highlighted in a 2024 congressional report examining connections between U.S. investment firms and Chinese businesses.
They were also the focus of a Reuters investigation in April, which revealed that he had invested at least $200 million in hundreds of Chinese companies, some linked to the Chinese military, either personally or through his funds between 2012 and December 2024.
Republican Senator Bernie Moreno, a Trump ally, joined the attack on Tan on Thursday, criticizing Intel for delays in its U.S. chip manufacturing plans.
However, the clash with Trump could exacerbate the challenges facing the firm and U.S. chip manufacturing as a whole.
“Intel has been a hope for America to build out more chip capacity and has struggled to do so to date,” said Janet Egan, senior fellow at the Center for a New American Security. “It’s important that we get continuity of leadership to support that ramping up of capacity.”
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