[ad_1]
The story so far: On Thursday (August 7, 2025), U.S. President Donald Trump singled out Intel’s CEO Lip-Bu Tan on the right-wing social media platform Truth Social, posting, “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!”
Mr. Tan, a Malaysian-born, Singapore-raised American citizen, took over the reins of the ailing chipmaker in March, three months after the abrupt departure of former CEO Pat Gelsinger. The company has been lagging behind Nvidia for several quarters now.
Why did Trump demand that the Intel CEO resign?
Mr. Trump did not cite specific details but suggested that Mr. Tan had serious conflicts of interest as Intel’s CEO. The U.S. President’s post on Truth Social likely referenced Mr. Tan’s Chinese investments, which numbered in the hundreds, as well as his past leadership position in a company with Chinese military links.
In a letter dated August 5, U.S. Senator Tom Cotton wrote to Intel’s Chairman of the Board of Directors, Frank D. Yeary, expressing his concerns.
“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,” Mr. Cotton claimed in the letter.
The U.S. senator wanted to know whether the Intel board made Mr. Tan formally take steps to divest from positions that could pose a conflict of interest for Intel’s CEO, and whether Mr. Tan had officially disclosed any other ties to Chinese companies.
Is Intel’s CEO involved with Chinese companies?
News agency Reuters reported that Mr. Tan had made many investments in Chinese companies.
Of particular note is Mr. Tan’s investment in Semiconductor Manufacturing International Corp (SMIC). Mr. Tan’s venture capital firm Walden International’s funds exited from SMIC in June 2013 and in January 2021, as reported in an investigation by the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party. SMIC was flagged by the U.S. in 2020 over links to China’s military.
Additionally, the report stated that Mr. Tan served on SMIC’s board from 2001 to 2018, and was compensated with “hundreds of thousands of dollars in salary and stock options for his tenure as a board member during those years.”
However, Walden International is still invested in funds and companies, including bodies with ties to the Chinse administration, per Reuters. Mr. Tan’s alleged ownership of Sakarya Limited and his reported involvement with Seine Limited would have given him significant exposure to Chinese companies in the form of stakes, according to the outlet.
Aside from his investments, there are security concerns about Mr. Tan’s time as the CEO of Cadence Design Systems between 2008 and 2021 (overlapping with his time at SMIC). This became a pressing issue after Cadence, a multinational electronic design automation (EDA) technology company headquartered in California, pleaded guilty to resolve charges that it violated export controls by selling EDA hardware, software, and semiconductor design intellectual property technology to a Chinese military university called the National University of Defense Technology.
The U.S. Department of Justice (DOJ) stated on July 28 that Cadence had agreed to pay criminal penalties of nearly $118 million to resolve the charges over the unlawful exports, and over $95 million in civil penalties.
Mr. Cotton noted in his letter that the “illegal activities occurred under Mr. Tan’s tenure.”
“Intel was awarded nearly $8 billion from the CHIPS and Science Act, the largest grant to a single company. 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,” said the Republican senator.
What was Intel’s response?
On Thursday (August 7, 2025), Intel published a statement defending the company, its board of directors, and Mr. Tan’s commitment to U.S. national and economic security as well as Mr. Trump’s “America First agenda.”
“Intel has been manufacturing in America for 56 years. We are continuing to invest billions of dollars in domestic semiconductor R&D and manufacturing, including our new fab in Arizona that will run the most advanced manufacturing process technology in the country, and are the only company investing in leading logic process node development in the U.S.,” stated Intel, stressing that it would engage with the U.S. administration.
However, Intel’s troubles are mounting as the chipmaker faces pressure from investors over slow progress, and the general public’s ire over mass layoffs even as Mr. Tan aims to streamline the company.
Adding to this, Mr. Trump’s public call for Mr. Tan’s resignation, which led to a slip in Intel’s shares, will make it even harder for the chipmaker to restore its reputation while facing a barrage of operational challenges.
Published – August 08, 2025 11:22 pm IST
[ad_2]
Source link
