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President Donald Trump has called for the immediate resignation of Intel Corporation’s CEO, Lip-Bu Tan, citing alleged conflicts of interest stemming from Tan’s investments in Chinese technology firms. The demand, posted on August 7, 2025, via Truth Social, labels Tan as “highly CONFLICTED” and has intensified scrutiny on Intel, a critical Pentagon supplier and the largest recipient of CHIPS and Science Act funding. Echoing concerns raised by Senator Tom Cotton (R-Ark.), Trump’s ultimatum triggered a 3.14% drop in Intel’s stock price, closing at $19.77 on August 7, as shown in the finance card above. As Intel struggles to regain its edge in the AI-driven semiconductor market, this controversy threatens to derail its turnaround efforts.
Trump’s Call and Cotton’s Concerns
In his Truth Social post, Trump declared, “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.” He provided no specific evidence but aligned with a letter Cotton sent to Intel’s board chair, Frank Yeary, on August 5, 2025, questioning Tan’s ties to Chinese firms. Cotton’s letter, reported by Reuters, cited a April 2025 investigation revealing Tan’s investments of over $200 million in 600+ Chinese companies, including at least eight linked to the People’s Liberation Army (PLA), through venture funds like Walden International.
Cotton also highlighted Tan’s tenure as CEO of Cadence Design Systems from 2009 to 2021, during which a subsidiary violated US export controls by selling chip design software to China’s National University of Defense Technology, a PLA-affiliated institution. Cadence pleaded guilty in July 2025, paying a $140.6 million settlement, per TechRepublic. Cotton argued that Tan’s history raises “serious questions” about Intel’s ability to safeguard national security, given its $7.9 billion CHIPS Act grant for US chip manufacturing and its role in the Secure Enclave program for defense semiconductors.
Intel’s Response and Tan’s Defense
Tan, who assumed Intel’s CEO role in March 2025, responded in an August 7 letter to employees, obtained by USA TODAY, denouncing “misinformation” about his past roles. “I have always operated within the highest legal and ethical standards,” he wrote, emphasizing his 40-year career’s integrity. Tan claimed to have divested from Chinese investments, though the extent remains unverified, per Reuters. He added, “We are engaging with the Administration to address these matters and ensure they have the facts. I fully share the president’s commitment to advancing U.S. national and economic security.”
Intel issued a statement to NBC News, affirming that Tan and the company are “deeply committed to the national security of the United States” and are addressing Cotton’s concerns directly. The board, per Tan’s letter, remains “fully supportive” of his leadership to transform Intel amid fierce competition from Nvidia and AMD.
Intel’s Precarious Position
Intel, once a semiconductor titan, has struggled to keep pace in the AI boom, with its market cap at $89.33 billion, as shown in the finance card above, dwarfed by Nvidia’s $2.9 trillion. Tan inherited a company reeling from former CEO Pat Gelsinger’s exit in December 2024, after failing to close the AI gap. In April 2025, Intel announced layoffs of 15,000 employees—15% of its workforce—and scaled back factory projects in Germany, Poland, and Ohio, per Fox Business. These moves, intended to cut costs, conflict with Trump’s push for US manufacturing, especially as he announced 100% tariffs on imported chips on August 6, 2025, with exemptions for domestic producers, per Morning Brew.
The CHIPS Act funding, aimed at boosting US chip production, ties Intel to stringent national security obligations. Cotton’s letter warned that Tan’s alleged PLA-linked investments could jeopardize Intel’s compliance, potentially risking its funding. The stock dip on August 7, from $20.41 to $19.77, reflects investor unease, though a slight recovery to $19.95 by August 8, per the finance card above, suggests cautious optimism.
Tan’s Background and Challenges
Born in Malaysia and a US citizen, Tan is a respected industry veteran, credited with transforming Cadence into a powerhouse, achieving over 3,200% stock growth, per Intel’s press release. At Intel, he’s tasked with reviving its foundry business and catching up in AI chip production. However, his venture capital work through Walden International, including stakes in firms like SenseTime, sanctioned by the US in 2019 for human rights violations, has drawn scrutiny, per Reuters.
Trump’s demand adds to Intel’s woes, following a 2024 board resignation by Tan himself over disagreements with Gelsinger’s strategy, per EE News Europe. The controversy could delay Intel’s $100 billion US factory expansion, critical for competing with Taiwan Semiconductor and securing Pentagon contracts.
Broader Implications
The dispute reflects escalating US-China tensions over semiconductors, vital for AI, defense, and consumer tech. Trump’s tariff threats and Cotton’s probe align with efforts to curb China’s chip ambitions, as seen in tightened US export controls since 2022. Posts on X show mixed sentiment: @TechBit called Tan’s situation “a political hit job,” while @VraserX warned that “Intel’s turnaround is at stake if leadership gets bogged down” []. These views are inconclusive but highlight public concern.
For Intel, the pressure is twofold: proving Tan’s integrity to retain CHIPS Act support and stabilizing its stock, which hit a year-low of $17.665, per the finance card above. A leadership change could further disrupt its recovery, as noted by South China Morning Post, which called Tan’s potential exit a “pile-on” for Intel’s challenges.
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