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Trump Calls For The Resignation Of Intel CEO Over Chinese Government Ties
August 07, 2025
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President Donald Trump demanded the immediate resignation of Intel CEO Lip-Bu Tan in a post on Truth Social Thursday, calling him "highly CONFLICTED" and stating there is "no other solution to this problem."

This call for resignation follows concerns raised by Senator Tom Cotton regarding Tan's extensive business ties to China, including investments in hundreds of Chinese firms, some linked to the Chinese military, and his past leadership at Cadence Design Systems, which pleaded guilty to violating U.S. export controls by selling technology to a Chinese military university.

The demand came shortly after Senator Cotton sent a letter to Intel's board chair, Frank Yeary, expressing concerns about the security and integrity of Intel's operations and Tan's connections to China.

Tan, a Malaysian-born American businessman, was appointed Intel's CEO in March 2025 to lead the company's turnaround, which includes significant cost-cutting and restructuring efforts. His past investments, made through his venture capital firm and other entities, reportedly totaled over $200 million in hundreds of Chinese advanced manufacturing and chip firms, some with links to the Chinese military.

He also served as CEO of Cadence Design Systems from 2009 to 2021, during which time the company faced a criminal case over export control violations.

Intel in a statement, said that both the company and Tan are "deeply committed to the national security of the United States and the integrity of our role in the U.S. defense ecosystem" and that they would address the questions raised by Senator Cotton directly. The company has not issued a public statement on Tan's future or the resignation demand.

Intel's stock price fell significantly in pre-market and early trading on Thursday, following Trump's post.

The company is grappling with a severe crisis, struggling to keep pace with competitors’ superior products while reeling from a leadership overhaul and significant layoffs.

Trump administration emphasizes boosting U.S. manufacturing, particularly in the semiconductor industry. Intel has received federal funding to build massive new chip fabrication plants in Ohio, alongside its existing facilities in Oregon, Arizona, and New Mexico. These investments are critical to Intel’s strategy to revitalize its manufacturing capabilities.

However, Intel’s foundry ambitions are faltering. In July, the company alarmed markets by suggesting it might exit chip manufacturing if it cannot secure customers for its upcoming 14A process, set for 2028 or 2029.

The lack of major clients for Intel’s foundry operations has raised doubts about the viability of its strategy, with former board members urging a drastic rethink, including a proposed “Operation Warp Speed II” to nationalize Intel’s fabs through a public-private partnership.

Other companies are moving to increase manufacturing footprint in the U.S. to comply with Trump's America first policy 'MAGA' policies. Apple CEO Tim Cook on Wednesday, presented Trump with a golden plaque after announcing $100 billion in U.S. manufacturing investments. Nvidia, an Intel rival, committed $500 billion to U.S. production amid soaring AI-driven profits, and its CEO Jensen Huang secured relaxed export restrictions on AI chips.

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