President Trump Demands Resignation of Intel CEO Amid Alleged Ties to China
President Donald Trump has made a rare public demand for the resignation of Intel’s CEO, Lip-Bu Tan, citing concerns over his alleged connections to China. In a social media post, Trump accused Tan of being “highly conflicted” due to his investments in companies that the U.S. government has linked to the Chinese military. This is an unusual move by a sitting president, as it is uncommon for a head of state to directly call for the resignation of a corporate executive.
Intel, a major player in the semiconductor industry, has received significant government funding to support domestic chip manufacturing. However, the company has not yet responded to requests for comment on the matter. Tan was appointed as CEO in March with the goal of revitalizing the tech giant, which has struggled to keep pace with competitors in China and other regions.
Born in Malaysia and raised in Singapore, Tan is a naturalized U.S. citizen and a well-known venture capitalist with deep expertise in the semiconductor sector. He has been under scrutiny for his business dealings, particularly after an update to investors this week revealed that Intel plans to scale back its manufacturing investments, including in the U.S., to align with customer demand. The company has already cut thousands of jobs this year as part of a broader effort to restructure.
Following Trump’s public criticism, Intel’s stock dropped more than 1.8% in morning trading. Trump, who has previously criticized the firm, is reportedly considering raising tariffs on the semiconductor industry. His message was clear: “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.”
Trump is known for his aggressive public criticism of business leaders, but this particular demand stands out even by his standards. In response to critics, the White House emphasized its commitment to national and economic security, stating that American companies in critical sectors should be led by individuals trusted by the public.
Trump has long expressed concerns about China leveraging U.S. technology, though his policies have often been inconsistent. While he has threatened tariffs on semiconductors—opposition from the business community—his administration has also relaxed some restrictions on U.S.-China business ties after pressure from tech firms like Nvidia.
In a recent statement, Intel defended Tan, asserting that he and the company are “deeply committed to the national security of the U.S. and the integrity of our role in the U.S. defense ecosystem.” This came in response to a letter from Republican Senator Tom Cotton, who questioned Tan’s hiring and potential ties to China. Cotton raised concerns about the security and integrity of Intel’s operations and their impact on national security.
Cotton highlighted Tan’s previous role as CEO of Cadence Design Systems, a company that pleaded guilty in July to violating U.S. export controls by doing business with China’s National University of Defense Technology. The company agreed to pay $140 million in penalties.
A Reuters investigation earlier this year found that Tan had invested at least $200 million in hundreds of Chinese companies between 2012 and December 2024, some of which are linked to the Chinese military. These investments were made either personally or through his San Francisco-based investment firm, Walden International.
A 2024 congressional report also examined the connections between U.S. investment firms and Chinese businesses, spotlighting some of Tan’s holdings. Meanwhile, Republican Senator Bernie Moreno, a Trump ally, has joined the criticism, accusing Intel of delays in its U.S. chip manufacturing plans.
This controversy highlights growing concerns about the intersection of U.S. national security and corporate interests, particularly in the high-stakes world of semiconductors. As the debate continues, the implications for Intel, its leadership, and the broader tech industry remain significant.