Trump Urges Intel CEO to Resign Amid China Ties

Trump’s Call for Resignation

President Donald Trump recently called for the immediate resignation of Intel CEO Lip-Bu Tan via his Truth Social platform. Trump labeled Tan as "highly conflicted," citing concerns over alleged ties to Chinese entities, and emphasized there was "no solution" to the issue other than resignation. The statement has intensified scrutiny of Tan, who took on the role of Intel CEO in March during a period of operational and financial turbulence for the company. His leadership is now facing challenges both internally and externally, particularly from U.S. government officials concerned about national security implications.

National Security and Financial Concerns

Senator Tom Cotton (R-Ark.) has raised serious concerns regarding Tan's investments in Chinese firms, some of which allegedly have connections to China's military. In a letter to Intel's board, Cotton questioned whether Tan’s associations compromise the company’s ability to fulfill its obligations under U.S. security regulations. These concerns are amplified by Intel's $8 billion grant from the CHIPS Act, which mandates stringent accountability for companies benefiting from taxpayer dollars. A Reuters investigation previously revealed that Tan's venture capital firm, Walden International, remains significantly invested in Chinese enterprises, including state-linked entities. This has raised bipartisan alarm over potential risks to U.S. national security.

Market Reaction and Company Challenges

Intel's stock experienced a notable drop following Trump’s public remarks, falling nearly 3% in premarket trading. The company's shares have been underperforming, lagging behind competitors such as Nvidia and AMD. Beyond the immediate market reaction, Intel continues to grapple with broader challenges, including setbacks in its manufacturing processes. Efforts to produce advanced chips at scale have faced delays, and the company recently announced it would cut 15% of its workforce to reduce costs. These struggles, coupled with financial losses in its foundry division and difficulty competing with market leaders like TSMC, have cast doubt on Intel's ability to navigate its turnaround strategy effectively.