United States President Donald Trump has called for the resignation of Intel CEO Lip-Bu Tan, citing concerns over Tan’s investments in Chinese technology firms. Trump took to social media to express his disapproval, stating, “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.” Trump’s post sent Intel’s stocks tumbling amid uncertainty about the company’s future leadership.
Tan, a longtime technology investor, was appointed as Intel’s CEO in March. However, his personal investments and the investments of the venture funds he manages have raised concerns about potential conflicts of interest. Reports have surfaced that Tan has invested nearly $200 million in Chinese technology manufacturing and chip firms, including some with links to the country’s military.
Some US politicians have expressed concerns about Tan’s ties to China, questioning whether his investments pose a risk to US national security. Republican Senator Tom Cotton of Arkansas has demanded more information about Tan’s hiring and his investments in China. Cotton pointed out that Cadence Design Systems, a company where Tan previously served in a leadership position, agreed to plead guilty to federal charges concerning the sale of technology and intellectual property to China’s National University of Defense Technology.
Cotton wrote to the chairman of Intel’s board of directors, Frank Yeary, expressing concern about the security and integrity of Intel’s operations and its potential impact on US national security. “Mr Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms,” Cotton wrote. “At least eight of these companies reportedly have ties to the Chinese People’s Liberation Army.”
Trump’s call for Tan’s resignation is consistent with his “America First” economic agenda, which emphasizes the need for US companies to prioritize domestic interests. Trump has imposed tariffs on foreign imports, including Chinese goods, in an effort to boost US manufacturing and protect national security. However, critics argue that Trump’s approach could have unintended consequences, including harming US businesses and disrupting global trade.
Analysts are divided over whether Trump’s pressure campaign against Tan will have a significant impact on Intel’s future. Some see it as a signal that Trump is serious about bringing business back to the US, while others warn that it could set a bad precedent for US business. “You don’t want American presidents dictating who runs companies,” said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. “But certainly his opinion has merit and weight.”
The uncertainty surrounding Tan’s future at Intel has raised questions about the company’s direction and potential impact on US national security. Intel has received significant subsidies from the US government, including $8 billion in subsidies under the 2022 CHIPS and Science Act, to build further chip manufacturing plants in the US. As the situation continues to unfold, it remains to be seen how Trump’s pressure campaign will affect Intel’s future and the broader US technology industry.