Trump Calls for Intel CEO's Immediate Resignation Over Alleged Conflicts
In a surprising move, Donald Trump has issued a call for the resignation of Intel's newly appointed chief executive, Lip-Bu Tan. In a post shared on his Truth Social platform, Trump claims that Tan is "highly conflicted" and states, "The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem."
Despite his strong words, Trump did not specify the nature of Tan’s alleged conflicts of interest. The call is likely tied to concerns raised by Republican Senator Tom Cotton earlier in the week. In a letter addressed to Intel’s board chair, Cotton voiced his worries regarding the "security and integrity of Intel’s operations" and highlighted Tan’s connections with China.
Lip-Bu Tan, prior to his role at Intel, was a prolific investor in Chinese tech companies through his venture capital firm based in San Francisco and businesses in Hong Kong. His investments included Semiconductor Manufacturing International Corp, China's leading chip manufacturer.
Tan was appointed as CEO of Intel in March, following the removal of Pat Gelsinger by the company’s board in December. Before joining Intel, Tan led Cadence Design Systems, which recently admitted to breaching US export controls by selling chip design tools to a Chinese university associated with the military.
The situation comes at a challenging time for Intel. The company, while being the only US-headquartered firm capable of producing advanced semiconductors, has struggled to keep pace with the boom in artificial intelligence chips. Intel also faces a significant strategic decision as it considers scaling back its next-generation manufacturing technology unless it can secure substantial external customers.
Senator Cotton's letter to Intel’s board underscores the expectation for Intel to responsibly manage US taxpayer funds and adhere to all relevant security regulations. He questions Intel's capacity to meet these obligations given Tan's past associations.
In response to Trump’s accusations, both Intel and the White House have yet to issue a statement. The controversy has already impacted Intel’s market standing, with shares falling by 3% in pre-market trading in New York.
