Updated 7 August 2025 at 19:52 IST
Trump Demands Intel CEO Lip-Bu Tan’s Resignation Over China Links
Donald Trump has demanded Intel CEO Lip-Bu Tan’s resignation over alleged links to Chinese firms. The call follows scrutiny by Senator Tom Cotton and could impact Intel’s restructuring plans amid national security concerns and efforts to revive its chipmaking dominance.
US President Donald Trump has called for the immediate resignation of Intel CEO Lip-Bu Tan, citing his alleged financial ties to Chinese companies, according to a report by Reuters. Trump said Tan is “highly conflicted” and “unfit” to lead the American chip giant, which plays a crucial role in the country’s semiconductor strategy.
The demand adds to mounting scrutiny after Republican Senator Tom Cotton questioned Intel’s board about Tan’s links to Chinese firms and a past criminal case involving his previous company, Cadence Design Systems.
Tan, who became Intel’s CEO in March following the ouster of Pat Gelsinger, is overseeing a major cost-cutting overhaul. His plan includes a 22% reduction in workforce and halting construction on some chipmaking plants.
The restructuring comes as Intel seeks to reclaim its global manufacturing edge and expand its domestic production with the help of nearly $20 billion in federal subsidies under the 2022 CHIPS Act.
In April, Reuters reported that Tan — either personally or through venture funds he controls — had invested over $200 million in Chinese tech and semiconductor companies, some with ties to the Chinese military. While sources claimed he has since divested, public records from China still listed many investments as active, raising questions about transparency.
Intel and Tan have not publicly responded to Reuters on Trump’s statement. However, the company said it remains committed to U.S. national security and intends to address the concerns raised by Senator Cotton.
Trump’s remarks caused Intel shares to dip nearly 4% in premarket trading.
Intel’s dominance in chipmaking has declined in recent years, especially as it trails behind Taiwan's TSMC and lacks a foothold in the fast-growing AI chip segment, currently led by Nvidia. Tan’s leadership now faces fresh challenges as political pressure intensifies around his past business dealings.
Last month, Intel had announced that it will let go of nearly 24,000 employees this year, that is approximately one out of four people who have worked there at the end of 2024.
Published By : Avishek Banerjee
Published On: 7 August 2025 at 19:52 IST