U.S. President Donald Trump has called for the immediate resignation of Intel’s newly appointed Chief Executive Officer, Lip-Bu Tan, describing him as “highly conflicted” due to extensive historical business ties to China, including firms linked to the Chinese military.
The public demand, issued via Trump’s Truth Social platform on Thursday, follows a recent letter by Republican Senator Tom Cotton raising similar concerns.
Tan, who assumed the role of Intel CEO in March 2025, has faced scrutiny since April, when Reuters reported that he or his venture capital entities had invested at least $200 million in Chinese advanced manufacturing and semiconductor companies. Several of those firms are known to be connected to the People’s Liberation Army (PLA) and state-backed research institutions.
Trump wrote, “There is no other solution to this problem,” warning that Tan’s position at the helm of one of America’s most strategically significant tech companies posed unacceptable risks.
Congressional and Investor Pressure
Senator Cotton’s letter, addressed to Intel’s board chair, questioned Tan’s ability to lead the company given past associations with Cadence Design Systems, where he served as CEO until 2021. The software firm recently agreed to plead guilty and pay $140 million to resolve U.S. charges related to sales to a Chinese military-linked university involved in nuclear simulation. The letter also referenced concerns about the depth of Tan’s divestments from his Chinese holdings.
Intel’s shares fell by nearly 5% in pre-market trading on Thursday in response to Trump’s statement. The incident has sparked debate among analysts and investors over the appropriate level of political influence in corporate governance. Phil Blancato, CEO of Ladenburg Thalmann Asset Management, commented: “It would be setting a very unfortunate precedent. You don’t want American presidents dictating who runs companies, but certainly his opinion has merit and weight.”
David Wagner of Aptus Capital Advisors added, “While many investors likely believe that President Trump has his hand in too many cookie jars, it’s just another signal that he’s very serious about trying to bring business back to the U.S.”
Intel’s Position in U.S. Strategy
Intel is a key beneficiary of the Biden-era CHIPS and Science Act, having secured $8 billion in federal subsidies to expand domestic chip production. It remains central to U.S. efforts to reshore semiconductor manufacturing and reduce dependence on Asian suppliers, particularly Taiwan’s TSMC. A leadership change at this juncture could complicate those efforts, especially as the company undertakes a significant restructuring.
Tan has laid out an ambitious recovery plan, including cutting the workforce by 22%—from approximately 96,000 to 75,000—by the end of 2025. He has also warned that Intel may exit chip manufacturing entirely unless it secures a major foundry customer, underscoring the company’s precarious position in a market increasingly dominated by Nvidia and AMD.
Intel has yet to formally respond to the calls for Tan’s resignation. A spokesperson reiterated on Wednesday that “Intel and Tan are deeply committed to the national security of the U.S. and the integrity of our role in the U.S. defence ecosystem.”
Historical Investments Scrutinised
According to Reuters’ April investigation, between 2012 and 2024, Tan held active investments in Chinese firms either personally or through his venture firm, Walden International. Public records revealed stakes in companies supplying the PLA, as well as joint ownership arrangements with Chinese government funds, including entities linked to regional administrations in Hangzhou, Hefei and Wuxi.
While a source close to Tan stated in April that he had begun divesting from these interests, many listings in Chinese corporate databases still showed his involvement at the time. The precise extent of any divestiture remains unverified.
Broader Political Context
The controversy reflects a growing trend in Washington of heightened scrutiny over Chinese involvement in U.S. technology infrastructure. Successive administrations have sought to tighten export controls, block Chinese investment in sensitive sectors, and limit the flow of intellectual property to entities linked to Beijing.
Trump’s intervention places additional pressure on Intel’s board as the company attempts to stabilise its position in a fast-evolving and politically sensitive industry. Analysts warn that continued uncertainty around executive leadership could affect Intel’s eligibility for future federal contracts and its ability to attract institutional investment.
Outlook
Intel’s market capitalisation remains under $100 billion, with its profit margins well below historical averages. Once the dominant force in chipmaking, it has lost ground in both manufacturing capacity and high-performance computing, most notably in the artificial intelligence segment.
Lip-Bu Tan’s leadership was initially viewed by some industry observers as a potential asset, given his deep experience and international connections. However, the political climate in the United States may now render those connections a liability.
