Trump calls on CEO of tech firm Intel to resign over China investments
Trump's decision to denounce Intel CEO Lip-Bu Tan on Thursday morning sent the company's stocks tumbling, amid the uncertainty about the future of its leadership.
'The CEO of INTEL is highly CONFLICTED and must resign, immediately,' Trump wrote. 'There is no other solution to this problem. Thank you for your attention to this problem!'
Trump's post appeared to be a response to reports that Tan has invested nearly $200m in Chinese technology manufacturing and chip firms, including some with links to the country's military.
But the president's social media message also raises concerns about his apparent willingness to get involved in the affairs of private companies, even calling for dramatic changes in leadership and direction.
Scrutiny on Tan's ties to China
Tan, a longtime technology investor, is relatively new to his post. He was appointed as Intel's CEO on March 12, and he also serves on the company's board of directors.
Previously, Tan served in leadership positions at the software company Cadence Design Systems, and he was a founding partner for the venture capital firm Walden Catalyst Ventures.
His personal investments — and the investments of the venture funds he manages — caught the public's attention shortly after his appointment at Intel, though.
In April, the news agency Reuters reported that, between March 2012 and December 2024, Tan invested in Chinese firms that create technology for the People's Liberation Army, China's armed forces.
For some US politicians, that raised a conflict of interest.
On Wednesday, for instance, Republican Senator Tom Cotton of Arkansas posted a letter on social media written to the chairman of Intel's board of directors, Frank Yeary.
In it, he demanded more information about Tan's hiring and his investments in China.
Cotton pointed out that, on July 28, Cadence Design Systems agreed to plead guilty to federal charges concerning the sale of technology and intellectual property to China's National University of Defense Technology.
That plea deal resulted in criminal and civil penalties of more than $140m.
'I write to express concern about the security and integrity of Intel's operations and its potential impact on US national security,' Cotton wrote in his letter to Yeary.
'Mr Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms. At least eight of these companies reportedly have ties to the Chinese People's Liberation Army.'
In an accompanying message to his social media followers, Cotton added that Intel 'owes Congress an explanation'. Intel and Tan have yet to respond to the concerns.
Trump pushes 'America First' plan
For years, the US and China have been locked in tense competition for economic and political dominance, and the US has repeatedly accused China of attempting to poach American innovation and spy on its technology firms.
China, meanwhile, has denied such allegations, describing them as part of a US smear campaign.
Founded in 1968, Intel has long been a flagship US technology firm, known for producing computer parts like microprocessors. But in recent decades, the company has struggled to keep pace with its competitors, particularly as artificial intelligence (AI) has transformed Silicon Valley, Intel's longtime home.
Trump, however, has sought to bolster domestic manufacturing with his 'America First' economic agenda, which leverages tariffs to discourage the import of products from abroad.
On Tuesday, the Republican leader even said he planned to impose 100-percent tariffs on foreign chips and semiconductors sold in the US.
But Trump has faced criticism for testing the boundaries of his executive power — and, in some cases, seeking to impose his will on the running of private companies.
Since taking office for a second term, for instance, Trump has withheld federal funds from private universities in order to extract guarantees that those institutions would eliminate their diversity initiatives and implement disciplinary reforms, among other demands.
In an interview with Reuters, analysts appeared split over whether Trump was overplaying his hand.
'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 US,' said David Wagner, the head of equity and a portfolio manager at Aptus Capital Advisors, which has invested in Intel.
Meanwhile, Phil Blancato, the CEO of Ladenburg Thalmann Asset Management, told Reuters that Trump ousting Tan could have a chilling effect on US business.
'It would be setting a very unfortunate precedent,' Blancato said. 'You don't want American presidents dictating who runs companies, but certainly his opinion has merit and weight.'
It is unclear how Trump's pressure campaign against Tan may affect Intel's future.
Last year, Intel received $8bn in subsidies under the 2022 CHIPS and Science Act, to build further chip manufacturing plants in the US.
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