Intel's New CEO Faces Backlash from Trump, Casting Doubt on Turnaround Efforts

Intel's CEO, Lip-Bu Tan, is facing criticism from US President Donald Trump, who accused Tan of conflicts of interest. Despite no evidence supporting the accusation, the attack casts doubt on Tan's turnaround efforts. Intel's shares fell 3.1% on Thursday but rose in premarket trade Friday. Trump has shown willingness to push companies to align with his agenda, as seen with Apple's commitment to domestic manufacturing. Intel's stock is on track for back-to-back annual declines, something that hasn't happened in at least 40 years.

Intel's CEO, Lip-Bu Tan, is under intense scrutiny following US President Donald Trump's public demand for his resignation. Trump accused Tan of conflicts of interest, citing his extensive investments in Chinese tech companies. Despite no concrete evidence supporting the accusation, the attack has cast doubt on Tan's turnaround efforts at Intel.

Tan's tenure at Intel has been marked by significant challenges, including the company's efforts to secure CHIPS Act funding and disagreements within the board about its future direction. The recent criticism from Trump and Senator Tom Cotton, who raised concerns about Tan's Chinese business ties, has added to these challenges.

Intel's stock reacted to the news, falling 3.1% on Thursday but rebounding in premarket trade on Friday. The stock volatility underscores the uncertainty surrounding Tan's leadership and the company's future. This comes as Intel is on track for back-to-back annual declines, a rare occurrence for the company.

Trump's intervention follows a pattern of his willingness to push companies to align with his agenda. His demand for Tan's resignation is part of a broader push for companies to prioritize domestic manufacturing and security. Apple's recent commitment to domestic manufacturing can be seen as a response to Trump's pressure.

The ongoing controversy over Tan's Chinese investments and his past role at Cadence Design Systems, which pleaded guilty to violating US export controls, has raised national security concerns. Tan has defended his leadership, emphasizing his commitment to US national security and Intel's transformation efforts.

Intel's board has expressed support for Tan's leadership, but the company's challenges extend beyond the Chinese investment scrutiny. The Wall Street Journal reported that the board has stalled Tan's efforts to raise new capital and acquire AI companies, indicating fundamental disagreements about Intel's future direction.

Intel's role as the largest recipient of CHIPS Act funding adds sensitivity to the situation. The company secured $8 billion in federal subsidies to boost domestic chip manufacturing, making Tan's foreign connections particularly sensitive for national security officials.

As the controversy unfolds, Intel faces a critical test of its leadership and strategic direction. The company's ability to navigate the political and financial challenges will be crucial to its future success.

References:
[1] https://timesofindia.indiatimes.com/technology/tech-news/intel-ceo-lip-bu-tan-replies-to-donald-trumps-call-to-resign-immediately-let-me-start-by-saying-this-the-united-states-has-been/articleshow/123183850.cms
[2] https://economictimes.indiatimes.com/news/international/us/intel-ceo-lip-bu-tan-latest-news-intel-stock-falls-after-donald-trump-calls-for-ceo-lip-bu-tan-to-resign-over-china-ties/articleshow/123167274.cms
[3] https://www.irishtimes.com/business/2025/08/07/donald-trump-calls-on-new-intel-chief-to-resign/