President Donald Trump escalated scrutiny of Intel’s leadership on Thursday, calling on the company’s CEO, Lip‑Bu Tan, to resign amid allegations of conflicts tied to Chinese investments.
In a post on Truth Social, Trump characterized Tan as “highly CONFLICTED” and demanded, “There is no other solution to this problem,” marking a rare direct intervention into corporate governance matters.
The announcement produced immediate market repercussions, with Intel’s stock tumbling—reports suggest a decline ranging between 3.3 % and 4.1 % in premarket trading.
Trump’s statement followed questions raised by Senator Tom Cotton (R‑Ark.), who on August 6 addressed a letter to Intel’s board chairman, Frank Yeary. Cotton expressed concern about Tan’s previous roles and investments in Chinese semiconductor firms—some reportedly tied to the Chinese Communist Party and the People’s Liberation Army. He also cited Tan’s tenure as CEO of Cadence Design Systems, which pleaded guilty last week to exporting controlled U.S. technologies to Chinese entities linked to the military.
Cotton’s letter specifically asked whether Intel’s board was aware of the legal issues at Cadence prior to Tan’s appointment, whether Tan had divested from Chinese holdings that could pose conflicts of interest, and whether any disclosure had been made regarding such ties—especially given Intel’s substantial funding from the CHIPS and Science Act.
These inquiries arrive at a pivotal moment. With Intel positioned at the center of efforts to revitalize American semiconductor manufacturing, scrutiny of its leadership raises broader questions about the intersection of global capital ties and national security imperatives.
