Trump Demands Intel CEO Resignation Citing Conflicts

Donald Trump has called for the resignation of Lip-Bu Tan, the newly appointed chief executive of Intel, claiming the longtime semiconductor industry figurehead is "highly conflicted."

Trump took to his Truth Social platform to demand Tan's immediate resignation, stating, "The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem," though he did not specify what these conflicts entailed.

This demand comes on the heels of a letter by Republican Senator Tom Cotton addressed to Intel’s board chair, expressing concerns about Intel's security, integrity, and Tan’s connections with China. Cotton's letter highlights worries regarding Tan's investments in Chinese tech firms through his venture capital endeavors.

Lip-Bu Tan, a prolific investor, has been involved in multiple Chinese tech initiatives, including Semiconductor Manufacturing International Corp, China's largest chip producer. Before his appointment at Intel, Tan led Cadence Design Systems, which recently admitted to breaching US export controls by supplying chip design tools to a military-associated Chinese university.

Following Trump's statement, both Intel and the White House did not immediately comment, though Intel's shares tumbled by 3% in pre-market trading in New York. Tan assumed the role of Intel CEO in March, taking over after Pat Gelsinger was dismissed in December.

As the only US company poised to produce advanced semiconductors, Intel has missed out on the AI chips boom. Despite receiving substantial US government subsidies, it struggles to compete with Taiwan's Semiconductor Manufacturing Company.

Senator Cotton emphasized Intel's obligations to responsibly manage taxpayer money and adhere to security regulations, with Tan's associations sparking serious questions about Intel's capacity to meet these obligations.