Why Trump has called for the resignation of Intel's CEO
In a post on Truth Social, Trump wrote, '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!'
The development sent the company's stocks tumbling, amid the uncertainty about the future of its leadership.
Here is a look at why Trump has asked Tan to resign, and why some experts are concerned about the demand.
In March, Intel appointed Tan as the new CEO of the company. He succeeded interim co-CEOs David Zinsner and M J Holthaus, who took over in December 2024, after the ouster of former Intel CEO Patrick Gelsinger.
Tan's appointment was seen as Intel's attempt to turn around its fortunes as the company had been in a battle for survival after failing to cash in on the booming AI market and falling far behind its peers in the semiconductor race.
Born in Malaysia and growing up in Singapore, Tan was chosen for the post as he possessed a diverse skill-set that covers the design and manufacturing aspects of fabricating AI chips. He had earlier served as CEO of Cadence Design Systems, a company that makes software tools for major chip designers, including Intel.
Tan is also a founder of a venture capital firm called Walden International with a focus on backing tech startups in Asia.
At the heart of the issue are Tan's personal investments — and the investments of the venture funds he manages. For instance, in April, Reuters reported that between March 2012 and December 2024, Tan invested in Chinese firms that create technology for the People's Liberation Army (PLA), China's armed forces.
While it is not illegal for Americans (Tan is a naturalised US citizen) to invest in China, some US politicians consider Tan's investments to be a conflict of interest.
On Wednesday (August 6), Republican Senator Tom Cotton of Arkansas posted a letter on X written to Frank Yeary, the chairman of Intel's board of directors.
He wrote, 'I write to express concern about the security and integrity of Intel's operations and its potential impact on US national security… 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.'
The senator demanded information about Tan's hiring and his investments in China.
The call for Tan's resignation has come at a time when the US and China are locked in a tussle for economic and political dominance. As a result, Trump has pushed to sever business ties between the US and China regarding advanced technology, claiming they could compromise national security.
Trump has also been pushing his 'America First agenda, which seeks to boost domestic manufacturing, and plans to impose 100% tariffs on foreign chips and semiconductors sold in the US.
While Trump is known to target business leaders to a degree unheard of with other Presidents, his call for the resignation of Tan is extraordinary, even by his standards, according to industry experts.
Phil Blancato, the CEO of Ladenburg Thalmann Asset Management, told Reuters that Trump's 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 remains to be seen how Trump's call for the resignation of Tan will affect the future of Intel.
In a statement on Thursday, the company said, 'Intel, the board of directors and Lip-Bu Tan are deeply committed to advancing US national and economic security interests… We look forward to our continued engagement with the administration.'
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