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The Hindu
an hour ago
- Business
- The Hindu
Trump calls on ‘highly conflicted' Intel CEO to resign over China ties
U.S. President Donald Trump on Thursday (August 7, 2025) demanded the immediate resignation of new Intel CEO Lip-Bu Tan, calling him "highly conflicted" due to his ties to Chinese firms and raising questions about plans to turn around the struggling American chip icon. Reuters reported exclusively in April that Mr. Tan — himself or through venture funds he has founded or operates — invested at least $200 million in hundreds of Chinese advanced manufacturing and chip firms, some of which are linked to the Chinese military. Mr. Trump's comments came a day after Reuters was first to report that Republican Senator Tom Cotton had sent a letter to Intel's board chair with questions about Mr. Tan's ties to Chinese firms and a recent criminal case involving his former firm Cadence Design. "There is no other solution to this problem," Mr. Trump said in a post on his Truth Social platform, knocking shares of Intel down around 2% in early U.S. trading. A change in leadership at Intel could pile pressure on the company, which is also a pillar of U.S. efforts to boost domestic chipmaking. Last year it secured $8 billion in subsidies, the largest outlay under the 2022 CHIPS and Science Act, to build new fabs in Ohio and other states. Analysts debated whether Mr. Trump should be making calls on corporate leadership. "It would be setting a very unfortunate precedent. You don't want American presidents dictating who runs companies, but certainly his opinion has merit and weight," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management, which does not own Intel shares. David Wagner, head of equity and portfolio manager at Intel shareholder Aptus Capital Advisors, responded that while "many investors likely believe that President Trump has his hand in too many cookie jars, it's just another signal that he's very serious about trying to bring business back to the U.S." Intel and Mr. Tan, who took over as CEO in March, did not immediately respond to Reuters requests for comment. An Intel spokesperson said in a statement on Wednesday that "Intel and Tan are deeply committed to the national security of the U.S. and the integrity of our role in the U.S. defence ecosystem." Reuters in April reported that Mr. Tan between March 2012 and December 2024 invested in Chinese firms, including in contractors and suppliers for the People's Liberation Army, according to a review of Chinese corporate databases cross-referenced with U.S. and analyst lists of companies with connections to the Chinese military. Reuters identified 20 investment funds and companies where his venture capital firm Walden is currently a joint owner along with Chinese government funds or state-owned enterprises, according to Chinese corporate records. The government funds are mostly from municipal governments of Chinese tech hubs like Hangzhou, Hefei, and Wuxi. A source familiar with the matter had at the time told Reuters that Mr. Tan had divested his positions in entities in China, without providing further details. Chinese databases reviewed by Reuters at the time had listed many of his investments as current, and Reuters was at the time unable to establish the extent of his divestitures. Mr. Tan, a Malaysian-born Chinese American business executive, was also the CEO of Cadence Design from 2008 through December 2021 during which the chip design software maker sold products to a Chinese military university believed to be involved in simulating nuclear explosions. Cadence last month agreed to plead guilty and pay more than $140 million to resolve the U.S. charges over the sales, a deal Reuters first reported. Business turmoil "This all boils down to Lip Bu's past involvement and investment in Chinese semiconductors, which is also what makes him so valuable as CEO," said Anshel Sag, principal analyst at Moor Insights & Strategy. Once the dominant force in chip-making, Intel has in recent years lost its manufacturing edge to Taiwanese rival TSMC. It also has virtually no presence in the booming market for artificial intelligence chips dominated by Nvidia. Its shares are little changed so far in 2025, after dropping more than 60% last year. The company's market value has fallen below $100 billion, with profit margins — once the envy of the industry — running at about half their historical highs. To revive Intel's fortunes, Mr. Tan has set a goal of slashing the chipmaker's workforce by around 22% to 75,000 people by year-end. Intel has also warned of exiting chip manufacturing if it fails to secure a major customer, a potentially drastic move.
Express Tribune
3 hours ago
- Business
- Express Tribune
Trump slams Intel's new boss as 'highly conflicted,' urges immediate resignation
Listen to article US President Donald Trump on Thursday demanded the immediate resignation of Intel's new CEO, Lip-Bu Tan, calling him "highly conflicted" due to his ties to Chinese firms and raising doubts about the future of the American chip icon. A change in leadership could pile pressure on the company as it pushes through a major strategic reset started by Tan that aims to slash costs by shrinking its workforce and halting construction on some of its planned manufacturing plants. Trump's comments came a day after Reuters reported US Republican Senator Tom Cotton had sent a letter to Intel's board chair with questions about Tan's ties to Chinese firms and a recent criminal case involving his former firm Cadence Design. Reuters reported in April that Tan - himself or through venture funds he has founded or operates - invested in hundreds of Chinese companies, some of which are linked to the Chinese military. "There is no other solution to this problem," Trump said in a post on his Truth Social platform, knocking shares of Intel down around 4% in US premarket trading. Intel is a key pillar of US efforts to boost domestic chipmaking and last year secured nearly $20 billion in grants and loans, the largest federal award under the 2022 CHIPS and Science Act, to subsidize leading-edge semiconductor production. Intel and Tan, who took over the CEO role in March after the ousting of his predecessor Pat Gelsinger late last year, did not immediately respond to Reuters requests for comment. An Intel spokesperson said in a statement on Wednesday that "Intel and Tan are deeply committed to the national security of the US and the integrity of our role in the US defense ecosystem." The company said it would address the matters in the letter with the Senator. The Intel CEO invested at least $200 million in hundreds of Chinese advanced manufacturing and chip firms between March 2012 and December 2024, Reuters reported in April. A source familiar with the matter had at the time told Reuters that Tan had divested from his positions in entities in China, without providing further details. Chinese databases reviewed by Reuters at the time had listed many of his investments as current, and Reuters was at the time unable to establish the extent of his divestitures. Once the dominant force in chip-making, Intel has in recent years lost its manufacturing edge to Taiwanese rival TSMC. It also has virtually no presence in the booming market for artificial intelligence chips dominated by Nvidia. To revive Intel's fortunes, Tan has set a goal of slashing the chipmaker's workforce to 75,000 people by year-end, a reduction of around 22%. Intel also vowed to take a more disciplined approach to manufacturing investment.
RTÉ News
4 hours ago
- Business
- RTÉ News
Trump calls on 'highly conflicted' Intel CEO to resign over China ties
US President Donald Trump has demanded the immediate resignation of Intel's new CEO, Lip-Bu Tan, calling him "highly conflicted" due to his ties to Chinese firms and raising doubts about the future of the American chip icon. A change in leadership could pile pressure on the company as it pushes through a major strategic reset started by Tan that aims to slash costs by shrinking its workforce and halting construction on some of its planned manufacturing plants. Trump's comments came a day after Reuters reported US Republican Senator Tom Cotton had sent a letter to Intel's board chair with questions about Tan's ties to Chinese firms and a recent criminal case involving his former firm Cadence Design. Reuters reportedin April that Tan - himself or through venture funds he has founded or operates - invested in hundreds of Chinese companies, some of which are linked to the Chinese military. "There is no other solution to this problem," Trump said in a post on his Truth Social platform, knocking shares of Intel down around 4% in US premarket trading. Intel is a key pillar of US efforts to boost domestic chipmaking and last year secured nearly $20 billion in grants and loans, the largest federal award under the 2022 CHIPS and Science Act, to subsidise leading-edge semiconductor production. Intel and Tan, who took over the CEO role in March after the ousting of his predecessor Pat Gelsinger late last year, did not immediately respond to Reuters requests for comment. An Intel spokesperson said in a statement on Wednesday that "Intel and Tan are deeply committed to the national security of the US and the integrity of our role in the US defense ecosystem." The company said it would address the matters in the letter with the Senator. The Intel CEO invested at least $200 million in hundreds of Chinese advanced manufacturing and chip firms between March 2012 and December 2024, Reuters reported in April. A source familiar with the matter had at the time told Reuters that Tan had divested from his positions in entities in China, without providing further details. Chinese databases reviewed by Reuters at the time had listed many of his investments as current, and Reuters was at the time unable to establish the extent of his divestitures. Once the dominant force in chip-making, Intel has in recent years lost its manufacturing edge to Taiwanese rival TSMC. It also has virtually no presence in the booming market for artificial intelligence chips dominated by Nvidia. To revive Intel's fortunes, Tan has set a goal of slashing the chipmaker's workforce to 75,000 people by year-end, a reduction of around 22%. Intel also vowed to take a more disciplined approach to manufacturing investment.
Economic Times
4 hours ago
- Business
- Economic Times
Trump wants Intel CEO out: Meet the chip industry veteran Lip-Bu Tan who is under US President's radar
Donald Trump has urged for Intel CEO Lip-Bu Tan's immediate resignation, alleging ties to China that pose a national security risk. Republican lawmakers, led by Senator Tom Cotton, have raised concerns about Tan's financial involvement in Chinese companies, including those with reported links to the Chinese military. Cotton also questioned a criminal case involving Tan's former company, Cadence Design. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads US President Donald Trump Thursday called for the for the immediate resignation of Intel CEO Lip-Bu Tan , citing alleged ties to China that he claimed pose a national security risk. '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!' Trump wrote on Truth President's remarks come amid heightened scrutiny from Republican lawmakers, including Senator Tom Cotton of Arkansas, who earlier this week raised alarm over Tan's reported financial involvement in Chinese companies. In a letter addressed to Intel board Chair Frank Yeary, Cotton cited an April Reuters report that disclosed Tan's personal and venture fund investments in hundreds of Chinese companies — including several with reported ties to the Chinese Senator Tom Cotton also sought clarification on a recent criminal case involving Bu Tan's former company, Cadence Design. According to a report, Cotton expressed 'concern about the security and integrity of Intel's operations and its potential impact on US national security.'"Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations. Mr. Tan's associations raise questions about Intel's ability to fulfill these obligations," Cotton reportedly named Lip-Bu Tan its new CEO in March this year, who succeeded Pat Gelsinger. Lip-Bu Tan, a Malaysian-born executive, grew up in Singapore, where he studied physics at Nanyang University. He then pursued a master's degree in nuclear engineering at the Massachusetts Institute of Technology (MIT).After gaining experience in venture investing, Tan joined the Cadence board in 2004 and then went on to become co-CEO in 2008 following Michael Fister's departure and assumed sole CEO responsibilities in led Cadence for over a decade before transitioning to the role of chairman, a position he held until 2023. Tan is an accomplished executive with more than two decades of semiconductor and software experience and deep relationships across the technology has received several accolades for his significant contributions to the industry, including the 2022 Robert N. Noyce Award, the Semiconductor Industry Association's highest honor, and was named one of Forbes' Top 50 Venture Capitalists, according to an official previously served as chief executive officer of Cadence Design Systems Inc. and was also a member of its board of his 12 years as Cadence's chief executive officer, he led a reinvention of the company and drove a cultural transformation centered on customer-centric innovation that enabled Cadence to more than double its revenue, expand operating margins and significantly outperform the is a founding managing partner of Walden Catalyst Ventures and chairman of Walden International, a leading venture capital firm. He has also served on the boards of public companies Credo Technology Group and Schneider Electric.
Time of India
4 hours ago
- Business
- Time of India
Intel CEO should resign immediately, no other solution as he is Highly ..., says Donald Trump
President Donald Trump has publicly called for Intel CEO Lip-Bu Tan to resign immediately, alleging a significant 'conflict of interest.' The demand, posted on Trump's Truth Social platform on Thursday (August 7), comes days after US Senator Tom Cotton has sent a letter to the US chipmaker's board chair, seeking clarifications about the new CEO and his alleged ties to Chinese firms. '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!' Trump said in a post on Truth Social. Following this statement, Intel's shares dropped by 5% in premarket trading. It is to be noted that Lip-Bu Tan was appointed CEO of the chipmaking giant in March, taking the helm as the company struggled to recover from a period of declining sales under his predecessor, Pat Gelsinger. US Senator sends letter to Intel Board on CEO Lip-Bu Tan's 'China ties' Trump's call for resignation comes just days after Senator Cotton raised concerns about Tan's alleged ties to Chinese companies. Senator Cotton also referenced a recent criminal case involving Cadence Design, a company where Tan served as CEO until 2021. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like She Was The Dream Girl In The 1980s, Here She Is Now. The Noodle Box Undo According to a report by news agency Reuters, Cotton expressed 'concern about the security and integrity of Intel's operations and its potential impact on US national security.' In his letter, Cotton specifically asked whether Intel's board was aware of subpoenas sent to Cadence Design during Tan's tenure as CEO, which concluded in 2021. He also sought details on what measures were taken to address those concerns before Tan's hiring at Intel. Cotton further questioned if Intel's board required Tan to divest from Chinese chip firms linked to the Chinese military or Communist Party. He also inquired whether Tan adequately disclosed any other ties to Chinese companies, especially given Intel's critical role in the Secure Enclave program. Realme Buds T200 Review: Vibrant Sound, Sleek Design
