Former Intel Directors Push Spinoff and CEO Replacement Amid Trump Criticism

Four former members of Intel’s board of directors have publicly endorsed President Donald Trump’s recent criticism of the company’s CEO, Lip-Bu Tan, while proposing sweeping changes that align with their long-standing concerns about the company’s performance [1]. In a rare joint statement, the ex-board members—identified in the Fortune article—argued that Tan should be replaced and that Intel’s manufacturing operations should be spun off into a new, independent entity [1]. This restructuring, they claimed, is essential to both restoring Intel’s competitive edge and ensuring the United States retains leadership in semiconductor manufacturing [1].

The former directors emphasized that Intel’s current leadership structure—now on its fourth CEO in seven years—has failed to deliver meaningful improvement in performance [1]. They suggested that a radical break from the status quo is necessary, particularly given the growing global competition in chipmaking and the strategic importance of semiconductors to national security [1]. The group specifically highlighted the need for special treatment of Intel’s Foundry business, which produces chips not only for the company’s own use but also for third-party customers [1]. This segment, they argued, is central to both market competitiveness and U.S. strategic interests, especially in the context of the ongoing trade tensions between the U.S. and China [1].

The statement follows a public call by President Trump for Tan’s resignation, citing his “conflicted” status and alleged ties to Chinese technology firms [1]. Trump’s remarks, posted on his social media platform Truth Social, caused immediate concern across the tech sector and led to a 3% drop in Intel’s stock [1]. In response, Tan issued a letter to employees defending his record and denying the allegations. He emphasized that he had always operated within legal and ethical boundaries and stated that the current board is fully supportive of his leadership [1].

The pressure on Intel is mounting as its market position continues to erode. The company has struggled to keep pace with rivals such as Nvidia and TSMC, despite significant investments in domestic manufacturing and research [1]. Intel has also faced criticism from lawmakers, including Senator Tom Cotton, over Tan’s past investments in Chinese firms [1]. In a previous statement, the company defended its commitment to U.S. national and economic security, pointing to its 56-year history of domestic chip manufacturing and ongoing investments in advanced fabrication facilities [1].

The former directors’ proposal includes using remaining funds from the CHIPS Act to finance the spinoff of the manufacturing division, which they claim would help attract domestic chip design companies and create a viable alternative to TSMC [1]. This would, in their view, enhance both the commercial viability of the new entity and its strategic value to national security [1].

Source: [1] title: The day after Trump called Intel’s chief ‘conflicted,’ former directors call for a new company, a new board and a new CEO (https://fortune.com/2025/08/08/intel-former-directors-call-for-new-ceo-board-manufacturing-spinoff/)