Amidst concerns about Intel CEO Lip-Bu Tan’s alleged ties and investments in China, US President Donald Trump has called for his immediate resignation.
In a post on Truth Social, Trump wrote there was “no other solution to this problem” than the departure of Tan, who took the Intel hot seat in March following the exit of Pat Gelsinger in late 2024.
While Trump did not provide details on his concerns about Tan, Reuters reported this week US Republican senator Tom Cotton had sent a letter to Intel’s board chair Frank Yeary with questions about Tan’s relations with Chinese companies and legal issues around Cadence Design Systems. The now Intel boss served as CEO of the software company from 2009 until 2021.
According to the news outlet, Tan has invested in hundreds of Chinese companies himself, or through venture funds he operates. It appears a key concern for the US administration is the fact some of these companies allegedly have links to the Chinese military.
At least $200 million has been invested by Tan in Chinese advanced manufacturing and chip companies over a 12 year period up to December 2024, Reuters added.
In his letter to Yeary, Cotton wrote: “Intel is required to be a responsible steward of the American taxpayer dollars and to comply with applicable security regulations. Mr Tan’s associations raise questions about Intel’s ability to fulfil these obligations.”
Since taking the Intel role, Tan has outlined a plan to reduce the company’s headcount by more than 20 per cent as part of a wider cost cutting effort, while implementing a more streamlined approach to operations.
Reaction
Anshel Sag, principal analyst at Moor Insights and Strategy, told Reuters the President “shouldn’t be calling for any CEO to step down, especially not one who just took the job this year”.
“I think this all boils down to Lip-Bu’s past involvement and investment in Chinese semiconductors, which is also what makes him so valuable as CEO.”
David Wagner, head of equity and portfolio manager at Intel shareholder Aptus Capital Advisors, however argued that while many would claim Trump has his hands in too many cookie jars, “it’s just another signal that he’s very serious about trying to bring back business to the US”.
“He has momentum from the Apple deal and now hoping that a few more businesses fall into place.”
Source: Mobile World Live
Image Credit: Stock Image
