US President Donald Trump has demanded the immediate resignation of Intel’s CEO, Lip‑Bu Tan, calling him “highly conflicted.” Trump’s post on Truth Social emphasized that, in his view, ending Tan’s leadership is the only solution.
Trump flags national security risks
The sharp public rebuke sent Intel’s stock tumbling by about 4 percent in early U.S. trading. The fall reflects growing alarm among officials over whether Tan’s past business ties might jeopardize US national security.
According to reports, Tan only began as CEO in March of this year, in the middle of a broad turnaround effort at the chipmaker. Earlier in the week, Republican Senator Tom Cotton raised concerns in a letter to Intel chair Frank Yeary about Tan’s extensive ties to Chinese firms.
Reports show Tan, or venture funds he runs, invested at least $200 million in hundreds of Chinese advanced‑manufacturing and chip companies between 2012 and 2024.
At least eight of these have reported connections to China’s military or Communist Party, prompting alarm.
Tan’s leadership history is also under scrutiny. As former CEO of Cadence Design Systems, he oversaw operations when the company sold chip‑design tools to China’s military‑linked university, an act that recently led to a $140 million guilty plea for export‑control violations.
Senator Cotton pointed out that the board may not have fully assessed these risks before appointing Tan. Intel, however, has defended him, saying both Tan and the company remain committed to U.S. national security.
Intel now faces a risky balancing act. The company has long struggled against rivals such as TSMC and Nvidia and was counting on nearly $8 billion in funding from the CHIPS and Science Act to regain competitiveness.
Trump’s ultimatum and growing Congressional scrutiny cast a shadow over its plans to build new U.S. facilities and tighten its manufacturing operations, a turnaround strategy Tan began pushing this year.
With market confidence wavering and national security concerns mounting, Intel’s next steps, and who leads them, will be closely watched.