Intel CEO Responds to Trump's Resignation Demand Amid Conflict Claims
Intel CEO Lip-Bu Tan has directly addressed former President Donald Trump’s public demand for his resignation, dismissing the concerns as based on “misinformation.” The controversy erupted after Trump, in a post on Truth Social, declared, “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.”
Trump’s strong words followed a letter sent by Senator Tom Cotton of Arkansas to Intel’s Board Chairman Frank Yeary. Cotton’s letter raised pointed questions about Tan’s investments in Chinese chip companies and their alleged connections to China’s government and military. A central point of contention was Tan’s 13-year tenure as CEO of Cadence Design Systems, a position he held until 2021. Just last month, Cadence pleaded guilty to violating U.S. export controls for selling hardware and software to China’s National University of Defense Technology without the requisite licenses. Senator Cotton also highlighted that Intel was awarded nearly $8 billion under the CHIPS and Science Act, suggesting that Tan’s associations could undermine confidence in Intel’s stewardship of American taxpayer funds.
In a memo circulated to staff, Tan vigorously defended his record. “I want to be absolutely clear: Over 40+ years in the industry, I’ve built relationships around the world and across our diverse ecosystem – and I have always operated within the highest legal and ethical standards,” he wrote. Tan also stated that Intel is actively engaging with the Trump Administration to clarify the facts surrounding the raised issues.
Tan joined the struggling semiconductor giant in March, inheriting a challenging landscape. He has been in the midst of implementing a rigorous turnaround strategy, which includes significant headcount reductions, aggressive spending cuts—such as scrapping plans for new factories in Germany and Poland—and a revamped artificial intelligence strategy aimed at bolstering Intel’s competitiveness against its rivals. This internal restructuring effort now faces an unexpected external political challenge.
The confrontation with Tan is not an isolated incident for Donald Trump, who has a well-documented history of pressuring corporate executives. During his previous term, Trump frequently used tariffs to push companies to increase domestic investment and publicly urged major corporations like Walmart to absorb rising tariff costs and Coca-Cola to switch from corn syrup to cane sugar. Unlike some other prominent tech leaders, such as Apple’s Tim Cook, OpenAI’s Sam Altman, Nvidia’s Jensen Huang, and Amazon’s Jeff Bezos, who have personally met with Trump to advance their business agendas, Tan has not cultivated a similar relationship with the former president.
[Intel’s CEO, battling a chip crisis, defies Trump’s fury over alleged China ties and billions in US aid.]