Three 'Big Questions' on national security that made Donald Trump ask Intel CEO to resign, saying 'no other solution'
President Donald Trump demanded the immediate resignation of
Intel
CEO Lip-Bu Tan, calling him "highly conflicted" after Senator Tom Cotton raised three critical questions about the executive's investments in Chinese firms linked to the People's Liberation Army.
"The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem,"
Trump posted on Truth Social, sending Intel shares down nearly 3%. Cotton's letter to Intel's board, sent just one day before Trump's demand, revealed that Tan
"reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms,"
with at least eight companies having ties to the Chinese People's Liberation Army.
Three critical questions that sparked Presidential intervention
Cotton's August 5 letter posed three specific questions that appear to have triggered Trump's response:
"Was the Board aware of Cadence's subpoenas before hiring Mr. Tan as CEO? If so, what measures were taken to address concerns about Cadence's activities under Mr. Tan?"
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"Did the Board require Mr. Tan to divest from his positions in semiconductor firms linked to the Chinese Communist Party or the People's Liberation Army and any other concerning entities in China that could pose a conflict of interest for Intel's CEO?"
"Given Intel's contract under the Secure Enclave program, has Mr. Tan disclosed any remaining investments, professional roles, or other ties to Chinese companies to the U.S. government?"
Cotton requested Intel's response by August 15, 2025, citing transparency and national security concerns.
"Mr. Tan's associations raise questions about Intel's ability to fulfill these obligations,"
Cotton wrote, emphasizing Intel's responsibility as a steward of taxpayer dollars. While the company's next steps remain unclear, Trump's public intervention suggests US lawmakers may escalate the matter further if Intel fails to address the concerns.
Intel CEO says there has been "Misinformation" about his past
Hours after Trump's demand, Tan sent a defiant memo to all Intel employees defending his leadership and dismissing the criticism.
"There has been a lot of misinformation circulating about my past roles at Walden International and Cadence Design Systems,"
he wrote, emphasizing that he has
"always operated within the highest legal and ethical standards."
The Malaysian-born CEO, who has lived in the US for over 40 years, declared that leading Intel
"is not just a job – it's a privilege"
and said the company was
"engaging with the Administration to address the matters that have been raised and ensure they have the facts."
Tan expressed alignment with Trump's security priorities while defending his leadership of the struggling chip giant.
But why Trump and US lawmakers want Tan out
The executive's deep financial ties to China have become the central issue. Reuters reported in April that Tan invested at least $200 million in hundreds of Chinese advanced manufacturing and chip firms between March 2012 and December 2024, with some companies linked to the Chinese military.
Adding to the controversy, Cadence Design Systems, where Tan served as CEO until 2021, pleaded guilty last month to illegally selling export-controlled technologies to a Chinese military university. The company agreed to pay over $140 million to resolve US charges over sales that occurred during Tan's tenure.
Intel secured $8 billion in CHIPS Act subsidies, the largest grant to a single company, making Tan's Chinese connections particularly problematic for national security officials. The Wall Street Journal reported that Intel's board has stalled recent efforts by Tan to raise new capital, suggesting internal tensions beyond the China controversy.
A White House official said Trump
"remains fully committed to safeguarding our country's national and economic security,"
including ensuring American companies are
"led by men and women who Americans can trust."
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