Former President Donald Trump has called for the resignation of Intel CEO Lip-Bu Tan, citing concerns about Tan’s alleged connections to China. Trump’s demand was made in a post on Truth Social, where he described Tan as “highly CONFLICTED,” suggesting that his departure is the sole solution to the purported issues at Intel.
This call follows recent scrutiny from Senator Tom Cotton, a Republican from Arkansas, who has expressed apprehensions about Tan’s ties to Chinese investments. In a letter to Intel’s board chair, Cotton highlighted reports indicating that Tan has invested in numerous Chinese companies, some linked to China’s military. He urged Intel’s board to clarify its commitment to national security, pointing out that US companies benefiting from government grants must ensure strict adherence to security protocols.
In response to the controversy, Intel released a statement affirming their commitment to advancing US national interests. The statement emphasised that both Tan and the board are dedicated to aligning their investments with the goals of Trump’s “America First” agenda.
Despite the controversy, Intel’s stock price fell by 3% following the news of Trump’s comments. Tan, who became CEO in March, has been tasked with revitalising Intel, a company that has struggled to adapt amidst the burgeoning markets for mobile and AI technologies. While rivals like Nvidia have achieved significant growth, becoming the first company to reach a $4 trillion valuation, Intel faces ongoing challenges, including workforce reductions of 15% as part of a strategy to become a more efficient organisation.
Prior to joining Intel, Tan led Cadence Design Systems and was a founding member of Walden Catalyst Ventures. Trump’s latest criticism adds to his previously expressed views on Intel, indicating a longstanding concern about the company’s direction and leadership, especially in the context of growing tensions with China.