President Donald Trump demanded the immediate resignation of Intel CEO Lip-Bu Tan on Thursday, labeling him “highly conflicted” due to his investments in Chinese companies.
Trump’s statement, posted on his Truth Social platform, stated, “There is no other solution to this problem.”
This follows a Reuters report highlighting Tan’s investments of at least $200 million in Chinese advanced manufacturing and chip firms, some allegedly linked to the Chinese military.
The demand caused Intel’s shares to drop approximately 2% in early U.S. trading, reflecting investor concerns about leadership stability.
Republican Senator Tom Cotton amplified the scrutiny by sending a letter to Intel’s board chair, questioning Tan’s ties to Chinese firms and his former company Cadence Design’s recent legal issues.
Cotton’s letter raised concerns about potential conflicts of interest, asking if Intel had requested Tan to divest from firms linked to the Chinese Communist Party or the People’s Liberation Army.
Intel, a key player in U.S. chipmaking with $8 billion in CHIPS Act subsidies, faces pressure to maintain national security integrity.
An Intel spokesperson stated, “Intel and Tan are deeply committed to the national security of the U.S. and the integrity of our role in the U.S. defense ecosystem.”
Intel is grappling with significant challenges, having lost its manufacturing edge to competitors like TSMC and falling behind Nvidia in the AI chip market.
Tan, who became CEO in March, aims to cut Intel’s workforce by 22% to 75,000 by year-end to address financial strains.
The company’s market value, now below $90 billion, lags behind rivals, with its stock underperforming the S&P 500’s 9% gain this year.
Trump’s broader push for domestic chip production, including threats of 100% tariffs on imported chips, underscores the strategic importance of Intel’s role in U.S. technology leadership.