U.S. President Donald Trump called for the immediate resignation of Intel’s new CEO, Lip-Bu Tan, saying he was “highly conflicted” after questions arose about his ties to Chinese firms and sparking doubts over the future of the American chip-making icon.
“There is no other solution to this problem,” Trump said in a post on his Truth Social platform, knocking shares of Intel down nearly 5% in premarket trading.
The move comes a day after Reuters reported U.S. Republican Senator Tom Cotton sent a letter to Intel’s board chair with questions about Tan’s ties to Chinese firms and a recent criminal case involving his former firm Cadence Design.
In April, Reuters reported Tan - himself or through venture funds he has founded or operates - has invested in hundreds of Chinese companies, some of which are linked to the Chinese military. The Intel CEO invested at least $200 million in hundreds of Chinese advanced manufacturing and chip firms between March 2012 and December 2024, Reuters found.
Intel did not immediately respond to a request for comment on Thursday.
Once the dominant force in chip-making, the company is in the middle of a strategy shift meant to revive its fortunes after it fell behind Taiwanese rival TSMC in manufacturing.
Intel also has virtually no presence in the booming market for AI chips dominated by Nvidia
Tan, who took over the CEO role in March after the ousting of his predecessor Pat Gelsinger late last year, has set a goal of slashing the chipmaker’s workforce to 75,000 people by year-end, a reduction of around 22%. Intel also vowed to take a more disciplined approach to manufacturing investment.
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