Trump Demands Intel CEO Resignation Over China Ties & AI Chip Lag
President Donald Trump has called for the immediate resignation of Intel’s newly appointed Chief Executive, Lip-Bu Tan, alleging that the semiconductor industry veteran is “highly conflicted.” The demand, posted on Trump’s Truth Social platform on Thursday, offered no specific details to substantiate the claim, stating only, “There is no other solution to this problem.” Following the announcement, Intel’s shares saw a 3 percent dip in pre-market trading in New York.
Trump’s strong assertion comes on the heels of a letter sent earlier this week by Republican Senator Tom Cotton to Frank Yeary, Intel’s board chair. Cotton’s correspondence expressed significant “concern about the security and integrity of Intel’s operations,” specifically highlighting Tan’s extensive ties to China. Before assuming the CEO role at Intel in March, succeeding Pat Gelsinger who was ousted in December, Tan led California-based Cadence Design Systems. Just last week, Cadence admitted to violating U.S. export controls by selling its chip design tools to a Chinese university with documented close ties to the military.
Beyond his tenure at Cadence, Tan has been a prolific investor in Chinese technology companies through his San Francisco-based venture capital firm and other entities based in Hong Kong. His past investment portfolio notably includes Semiconductor Manufacturing International Corp (SMIC), China’s largest chip manufacturer, which has been a point of contention for U.S. national security interests. Senator Cotton underscored these associations, writing to Yeary that “Mr Tan’s associations raise questions about Intel’s ability to fulfill these obligations.”
Intel holds a critical position as the only U.S.-headquartered company capable of producing advanced semiconductors, a strategic asset in an era of intense technological competition. Despite this, the company has largely missed out on the burgeoning demand for artificial intelligence chips. Intel has also been a significant recipient of U.S. government support, securing billions of dollars in subsidies and loans aimed at bolstering its domestic chip manufacturing capabilities, which currently lag behind its primary rival, Taiwan Semiconductor Manufacturing Company (TSMC).
The company’s financial and strategic challenges were further highlighted last month when Tan, amidst a radical cost-cutting program, warned that Intel might be forced to abandon the development of its next-generation manufacturing technology if it could not secure a “significant external customer.” Such a move would effectively hand a virtual monopoly on leading-edge chipmaking to TSMC, further concentrating global semiconductor production outside the United States. Senator Cotton emphasized this responsibility, stating, “Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations.” Neither Intel nor the White House immediately responded to requests for comment regarding Trump’s latest remarks.