Intel CEO pressured to step down by Trump
President Donald Trump demanded the resignation of Intel CEO Lip-Bu Tan on Thursday, expressing his concerns through a post on Truth Social. This demand is not the first time Trump has criticized Intel, as he has previously raised questions about Tan's alleged connections to China.
The controversy stems from accusations made by U.S. Republican Senator Tom Cotton and former President Trump, who claim that Tan's extensive investments in Chinese advanced manufacturing and chip firms pose a national security risk. These allegations centre around Tan's past leadership at Cadence Design Systems, a company that pleaded guilty to violating export controls by selling technology to China’s National University of Defence Technology with military ties, as well as his personal investments in Chinese companies, some allegedly connected to the Chinese military.
Tan, who has been Intel's CEO since March 2025, has publicly refuted these allegations, calling them "misinformation" and affirming his commitment to U.S. national security and ethical business practices. He emphasized decades of industry experience, global relationships, and adherence to legal standards, also indicating strong support from Intel’s board.
Intel, in a statement, said it looks forward to working with the Trump administration. However, it's important to note that the company announced in July that it had slashed 15% of its workforce to create "a faster-moving, flatter and more agile organization." Shares of Intel (INTC) closed down 3% on Thursday in response to these developments.
Tan's expected visit to the White House aims to clarify his position and Intel’s commitment to national security. This story has been updated with additional context and developments. It's worth mentioning that Tan was also a founding member of Walden Catalyst Ventures.
The issue is highly politicized, with some commentators questioning the fairness and evidence of singling out Tan based on ethnicity or nationality. Many global tech leaders have business ties to China, and the controversy raises questions about the balance between national security concerns and the global nature of the tech industry.
Reuters reported in April that Tan has personally and through various venture funds invested in hundreds of Chinese companies. Some of these Chinese companies have ties to China's military. Arkansas Republican Sen. Tom Cotton raised concerns about Tan's alleged connections to China, pressing the chair of Intel's board over the matter.
On Wednesday, Trump criticized Intel during an announcement with Apple CEO Tim Cook, stating that Intel "was just taken over the coals" and "was taken to the cleaners." Rival Nvidia, whose chips have been crucial for AI infrastructure, became the first $4 trillion company last month.
Before taking over the top job at Intel, Tan was the CEO of tech design company Cadence Design Systems. The controversy surrounding Tan's ties to China continues to unfold, with both Tan and Intel actively engaging with U.S. authorities to resolve the controversy.
- The controversy surrounding Intel's CEO, Lip-Bu Tan, has been politicized, with some commentators questioning the fairness and evidence of singling him out based on ethnicity or nationality.
- Tan, who has been Intel's CEO since March 2025, has publicly refuted allegations about his investments in Chinese companies, calling them "misinformation" and affirming his commitment to U.S. national security and ethical business practices.
- In the tech industry, many global leaders have business ties to China, and the controversy raises questions about the balance between national security concerns and the global nature of the tech industry.
- On Thursday, shares of Intel (INTC) closed down 3% in response to the developing situation involving Tan and his alleged connections to China.
- The White House has scheduled a visit for Tan to clarify his position and Intel’s commitment to national security.
- Before taking over the top job at Intel, Tan was the CEO of tech design company Cadence Design Systems, where it was pleaded guilty to violating export controls by selling technology to China’s National University of Defence Technology with military ties.
