Trump is calling for Intel's CEO to step down. Here's why.
President Donald Trump called for the immediate resignation of Intel CEO Lip-Bu Tan after a Republican lawmaker aired concerns over Tan's reported ties to Chinese firms and a recent criminal case involving the executive's former company.
The president wrote on his social media platform Truth Social on Thursday, Aug. 7, that Tan “is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.”
Trump's comments came a day after Republican Sen. Tom Cotton sent a letter to Intel's board chair with questions about Tan's ties to Chinese firms and a recent criminal case involving his former firm Cadence Design. The Arkansas lawmaker cited Reuters' exclusive reporting in April of Tan's investments, some of which were made via venture firm or holding companies, of at least $200 million in hundreds of Chinese advanced manufacturing and chip firms, some linked to the Chinese military.
Cotton said in the letter he has concerns about the "security and integrity of Intel's operations and its potential impact on U.S. national security" related to Tan's reported investments. Ohio Republican Sen. Bernie Moreno joined in on the calls questioning the CEO, posting on X Aug. 7 that it is "pretty obvious" that Intel failed its commitments to the state and that Ohio should start a fraud investigation. Intel has invested billions into building microchip factories in the state.
Paste BN has not received an immediate response for a request for comment from Intel or Tan.
Intel's stock price slipped by more than 3% by early afternoon Thursday, Aug. 7, in wake of the lawmakers' calls earlier that day.
Chip manufacturing has become a key sticking point for the Republican president since taking office in January, singling out the industry in his effort to bolster U.S. manufacturing. During a White House event Wednesday, Aug. 6, Trump threatened to impose a 100% tariff on foreign semiconductors in an effort to ground supply chains in the U.S.
Tan took the top job at the struggling company in March, replacing two interim co-CEOs after the ousting of Pat Gelsinger in December 2024. Tan, a Malaysian-born Chinese American, is a semiconductor-industry veteran who once served as CEO of Cadence Design Systems from 2009 to 2021. The company agreed to plead guilty in July over charges it committed criminal violations of export controls, after it sold products to a Chinese military university believed to be involved in simulating nuclear explosions. Tan was CEO during the time of these sales, Reuters reports.
Some analysts and investors said Tan's deep knowledge of the Chinese semiconductor landscape is a strategic asset. Others see the political pressure as a sign of growing uncertainty around Intel.
Intel was once the globe's leading chipmaker. But the company has struggled to regain its foothold in recent years, as its server chip business took a hit amid a rush of spending and interest on AI chips, a sector that Intel's competitor Nvidia currently dominates.
A change in leadership at Intel could pile pressure on the company, which is also a pillar of U.S. efforts to boost domestic chipmaking. Last year it secured $8 billion in subsidies from former President Joe Biden's administration, the largest under the 2022 CHIPS and Science Act.
Kathryn Palmer is a national trending news reporter for Paste BN. You can reach her at kapalmer@usatoday.com and on X @KathrynPlmr.