Trump reverses course on Intel CEO amid US-China chip showdown
Once the undisputed leader in microchip production, Intel stumbled in recent years and lost ground to Asian rivals, facing delays in advanced manufacturing.
Trump confirmed the meeting via a post on Truth Social, calling the meeting a "very interesting one".
Intel also confirmed that the meeting took place in a statement published on Tuesday.
"Mr. Tan had the honour of meeting with President Trump for a candid and constructive discussion on Intel's commitment to strengthening US technology and manufacturing leadership," said the firm.
"[We] look forward to working closely with him and his administration as we restore this great American company."
As of 13.00 CEST, Intel shares were up 2.9% in pre-market trading on Tuesday, after jumping roughly 3.5% on Monday.
Falling behind rivals
For decades, Intel set the pace for microprocessor innovation — especially for PCs — but in the late 2010s, it fell behind Taiwan's TSMC and South Korea's Samsung in manufacturing cutting-edge chips.
Repeated delays in rolling out its 10-nanometer and 7-nanometer processors damaged its reputation and eroded customer trust.
Intel is also caught in the ongoing US–China tech rivalry, with Washington pushing it to build domestic capacity while restricting Chinese access to advanced chips.
The perceived China ties of CEO Lip-Bu Tan due to his venture capital background led to an initially frosty reception from Trump.
Ties to China
Trump called for Tan's resignation last week after US Senator Tom Cotton wrote to Intel's board, raising concerns over what he described as 'Tan's investments and ties to semiconductor firms reportedly linked to the Chinese Communist Party and the People's Liberation Army".
Tan previously led Cadence Design Systems, from 2009 until 2021, which in July reached a plea deal with the government over allegations of illegal exports to China. Cadence said it it violated export controls rules to sell hardware and software to China's National University of Defense Technology, which is linked to the Chinese military.
Lip-Bu Tan is a Malaysian-born US citizen who founded the Silicon Valley–based firm Walden International in 1987 and has invested heavily in semiconductor start-ups across Asia, including extensive involvement in China.
Through these investments, he became a seed investor in SMIC, China's largest chip foundry, joining its board from 2001 to 2018. SMIC later came under US sanctions for its close ties to the Chinese military.
When President Trump publicly demanded Tan's resignation last week due to his alleged ties with Chinese firms, Intel shares dropped more than 3% during intra‑day trading.
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