Ex-Intel board members seek leadership shake-up after Trump's call for Lip-Bu Tan's resignation. But there is a catch
In a statement to Fortune, four former board members of Intel also demanded a radical restructuring of Intel that would revamp the company's manufacturing vertical into an independent company to re-establish its dominant position in the United States' chipmaking market.
Charlene Barshefsky, Reed Hundt, James Plummer, and David Yoffie said that Intel has hired its fourth CEO in seven years but results have hardly improved. They claimed that only a dramatic shift in the company's workflow could restore Intel's competitiveness in the American market, much of which has been captured by rival Nvidia.
Intel CEO Lip-Bu Tan says he's 'always operated within the highest legal and ethical standards' after President Donald Trump said he should resign.
Tan also said Intel was in contact with the Trump administration.
'We are engaging with the Administration to address the matters that have been raised and ensure they have the facts,' Tan said. 'I fully share the President's commitment to advancing US national and economic security, I appreciate his leadership to advance these priorities, and I'm proud to lead a company that is so central to these goals.'
Intel said in a statement that it's 'deeply committed to advancing US national and economic security interests and are making significant investments aligned with the President's America First agenda.'
Tan also addressed the situation, saying in a message to employees that there was misinformation circulating about his past roles at Walden International and Cadence Design Systems and that he's always followed proper standards.
In a post on Truth Social, US President Donald Trump said, 'The CEO of Intel is highly CONFLICTED and must resign, immediately. There is no other solution to this problem. Thank you for your attention to this problem!'
His comment came shortly after Senator Tim Cotton wrote a letter to Intel Chairman Frank Yeary, flagging concerns over Tan's alleged ties with Chinese firms.
In his letter, Senator Tim Cotton also flagged a recent criminal case involving Intel CEO Lip-Bu Tan's former company Cadence Design.
Writing in order to 'express concern about the security and integrity of Intel's operations and its potential impact on US national security', the Senator posed questions to Intel Chairperson Frank Yeary in his letter. He asked if Intel's board was aware of the subpoenas received by Cadence during the time Tan was CEO of the company.
Cotton also raised questions about the measures that Intel had taken to address this issue.
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