Trump Demands Intel CEO’s Resignation

• Donald Trump has called for the immediate resignation of new Intel CEO Lip-Bu Tan.
• The former president cites national security concerns stemming from Tan’s business connections with Chinese firms, some with military ties.

Concerns Over China Ties

Donald Trump publicly demanded the immediate departure of Intel CEO Lip-Bu Tan, citing significant conflicts of interest. The former president highlighted Tan’s extensive business relationships with numerous Chinese firms, an issue that had been previously reported by Reuters. These concerns were echoed by Republican Senator Tom Cotton, who sent a letter to Intel’s board questioning Tan’s connections and his prior company’s legal issues. This public pressure from a former president is a rare occurrence and has prompted a debate among investors and analysts.

The controversy centers on Tan’s investments in hundreds of Chinese technology and chip manufacturing companies. Reuters exclusively reported that some of these firms have ties to the Chinese military. Furthermore, Tan’s venture capital firm, Walden International, is a joint owner in several enterprises with Chinese state-owned and government-funded entities. While a source claimed Tan has divested from these holdings, many still appear as active in Chinese corporate databases.

Another point of contention is Tan’s previous role as CEO of Cadence Design, a company that sold software to a Chinese military university. This institution is linked to nuclear simulation research, raising serious national security questions. Cadence recently pleaded guilty to the charges and paid a substantial fine to U.S. authorities. The combination of these issues has cast a shadow on Tan’s leadership and fueled the former president’s call for his removal.

Intel’s Challenges

The demand for a leadership change comes at a particularly sensitive time for Intel. The company has been struggling for years to regain its competitive edge in the semiconductor industry, losing its technological lead to rivals like TSMC. Intel has also largely missed the booming market for artificial intelligence chips, a sector now dominated by Nvidia. Its stock performance has been poor, and its market value has fallen significantly below its competitors.

Following the departure of his predecessor, Pat Gelsinger, Tan’s appointment was intended to revitalize the company. He embarked on a strategy of aggressive workforce reductions and has put several factory projects on hold. However, some of Intel’s newer manufacturing technologies are reportedly facing quality control issues. This has cast doubts on the company’s ability to regain its leading position and has drawn criticism from officials like Ohio Senator Bernie Moreno, who has suggested a fraud investigation into Intel’s commitments to the state.