Trump calls for Intel boss to resign immediately, alleging China ties

United News of India

4 days ago

Washington, Aug 9 (UNI) US President Donald Trump has demanded that the head of US chipmaker Intel should resign "immediately", accusing him of having ties to China.
In a social media post, Trump said Lip-Bu Tan was "highly conflicted", apparently referring to his alleged investments in companies that the US says are tied to the Chinese military.
It is unusual for a president to demand the resignation of a corporate executive, BBC reported.
In a note to staff, Mr Tan pushed back against the criticism as "misinformation".
"I have always operated within the highest legal and ethical standards," he said of his more than 40-year career in the US.
Mr Tan, a US citizen born in Malaysia and raised in Singapore, is a venture capitalist well-known for his expertise in the semiconductor industry.
He was appointed in March to turn around Intel, a pioneer of the US chips industry that has more recently fallen behind competitors.
The tech giant has received billions of dollars from the US government as part of the effort to rebuild US semiconductor manufacturing.
Shares in Intel fell more than 3% on Thursday after the attack from Trump, who has been critical of the firm previously and is preparing to raise tariffs on the chip industry.
"The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem," Trump wrote.
It is not illegal for Americans to invest in Chinese firms.
Trump's attack took up concerns aired by Republican Senator Tom Cotton this week in a letter to Intel's board that said Mr Tan's "associations raise questions about Intel's ability" to be a "responsible steward of American taxpayer dollars and to comply with applicable security regulations".
Cotton pointed to Mr Tan's role as the longtime chief executive of tech firm Cadence Design Systems, which pleaded guilty in July and agreed to pay $140m over US charges that its subsidiary in China had repeatedly done business with the country's National University of Defense Technology, violating US export controls.
Mr Tan himself was not indicted.
"Intel, the board of directors and Lip-Bu Tan are deeply committed to advancing US national and economic security interests," Intel said in a statement on Thursday, adding that it was making significant investments in the US aligned with Trump's "America First agenda".
"We look forward to our continued engagement with the administration."
In a recent update to investors, Mr Tan had said the firm would be scaling back its investments in manufacturing, including in the US, to match demand from customers.
Intel has already cut thousands of jobs this year as part of an effort to "right-size" the firm.
Responding to critics who said Trump had gone too far, the White House told the BBC: "President Trump remains fully committed to safeguarding our country's national and economic security. This includes ensuring that iconic American companies in cutting-edge sectors are led by men and women who Americans can trust."
Mr Tan's ties to China had been spotlighted in a 2024 congressional report examining links between US investment firms and Chinese businesses.
UNI RN