President Donald Trump has escalated pressure on Intel CEO Lip-Bu Tan by publicly demanding his immediate resignation amid allegations over Tan's financial ties to Chinese firms.
Trump labeled Tan “highly conflicted” on his Truth Social platform, triggering a nearly 5% drop in Intel’s premarket shares.
The controversy deepened following a letter from Republican Senator Tom Cotton to Intel’s board chairman, flagging Tan’s investment of at least $200 million in Chinese semiconductor and manufacturing companies, some linked to China's military.
Cotton questioned Tan’s suitability following Intel’s $8 billion CHIPS Act grant, stressing concerns about national security and stewardship of taxpayer funds.
Allegations Against Lip-Bu Tan
Reports indicate that Tan's investments span hundreds of Chinese firms from 2012 to 2024, which raises concerns, particularly given that some of these firms have military ties.
His previous role at Cadence Design Systems, which pleaded guilty to unlawful technology transfers to China’s National University of Defense Technology, compounds worries over compliance and governance.
Did you know?
Intel CEO Lip-Bu Tan previously led Cadence Design Systems, which pled guilty to U.S. export control violations involving Chinese military institutions.
National Security Implications
The US government’s scrutiny highlights fears that Tan’s connections could jeopardize Intel’s participation in sensitive initiatives, including the Biden administration’s Secure Enclave program aimed at safeguarding military microchip supply chains. Intel’s leadership credibility is at stake amid heightened geopolitical tensions with China.
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Intel's Response
Intel affirmed the company and Tan’s commitment to US national security and their role in the defense ecosystem. The company intends to engage with Senator Cotton to address these issues. Meanwhile, sources report Tan has divested many Chinese investments, though the timing remains unclear.
Future Impact on Intel
Tan took over as CEO in March 2025 during a challenging period marked by competition from rivals and internal restructuring. His strategies include workforce reductions and factory consolidation.
This controversy adds pressure on Intel’s leadership and raises questions about balancing global investments with domestic security priorities.
Trump’s demand underscores the intense political and public scrutiny Intel faces. How the company navigates this crisis will significantly affect its governance and position in the global semiconductor landscape.
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