U.S. President Donald Trump has called for the immediate resignation of Intel CEO Lip-Bu Tan, accusing him of being “highly conflicted” due to extensive investments in Chinese tech firms, some linked to the Chinese military. The demand comes as scrutiny intensifies over Intel’s leadership amid national security concerns and underwhelming business performance, Reuters news report said.
The controversy follows a Reuters investigation from April, which revealed that Tan — directly and through his venture capital firm Walden — invested over $200 million in hundreds of Chinese semiconductor and advanced manufacturing companies between 2012 and 2024. Several of these firms were identified as contractors or suppliers to China’s People’s Liberation Army (PLA).
Trump’s statement, posted on his Truth Social platform, said: “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.” The post caused Intel shares to fall nearly 3 percent in late morning trading.
The call for Tan’s resignation follows a letter from Republican Senator Tom Cotton to Intel’s board chair raising concerns about Tan’s past business ties and the recent criminal case involving his former company, Cadence Design Systems. Cadence recently agreed to plead guilty and pay over $140 million to settle charges related to illegal sales of chip design software to a Chinese military university.
Intel and Tan have yet to issue a direct response, but a company spokesperson previously told Reuters that both Intel and its CEO are fully committed to U.S. national security and their role in the defense ecosystem.
Pressure Mounts on Intel
Tan, a Malaysian-born Chinese American executive, took over as Intel’s CEO in March after the sudden departure of Pat Gelsinger. Under Gelsinger, Intel failed to meet key milestones related to manufacturing and artificial intelligence, ultimately leading to his early removal.
Tan was brought in with hopes of steering a turnaround. However, his early moves — including large-scale layoffs, delayed plant construction, and shelving of Gelsinger’s AI-centric strategy — have drawn criticism from both political and investor circles. Intel’s planned chip plant in Ohio, initially backed by $8 billion in CHIPS Act subsidies, has seen its timeline pushed back to as late as 2031.
Ohio Senator Bernie Moreno called for a fraud investigation into Intel’s commitments to the state, stating on X (formerly Twitter), “It is pretty obvious that Intel failed its commitments.”
Broader Industry Impact
Trump’s demand is an unusual presidential intervention in corporate governance and has raised concerns about political overreach in business. Still, some investors acknowledged the seriousness of the national security concerns.
Intel’s share price has stagnated through 2025 after a dramatic 60 percent drop in 2024. Its market value remains below $100 billion, a fraction of rival Nvidia’s $4 trillion capitalization. Once a cornerstone of U.S. chip supremacy, Intel is now largely absent from the high-growth AI chip market and continues to lose share in data centers and PCs to AMD.
National Security Spotlight
Reuters’ reporting showed that Tan’s venture firm still jointly owns stakes in 20 Chinese investment entities alongside state-owned or government-backed funds, including those from Hangzhou, Hefei, and Wuxi — tech hubs in China. A source familiar with the matter said Tan has divested from some Chinese positions, but Chinese databases reviewed earlier this year still list many investments as active.
What’s Next for Intel?
Tan’s future as CEO hangs in the balance amid growing bipartisan pressure, lingering investor doubts, and geopolitical tension over U.S.-China tech competition. Intel, once a symbol of American innovation, now finds itself at the center of a political and economic storm — with its turnaround strategy under intense scrutiny.
TelecomLead.com News Desk