President Eases Stance on Intel CEO After White House Meeting

In a significant development, the U.S. President has softened his stance on the CEO of Intel, no longer demanding their resignation. This shift in attitude comes after a meeting at the White House, where the President praised the CEO's personal journey as an "amazing story." This move has temporarily eased the political storm surrounding the American chip giant.

The meeting, which took place on Monday, involved the President and the CEO of Intel, along with the U.S. Secretary of Commerce and the Secretary of the Treasury. Following the meeting, the President posted on his social media platform, highlighting the productive nature of the discussion and expressing admiration for the CEO's personal achievements. Notably, just four days prior, the President had publicly called for the CEO's resignation, citing "highly conflicted" interests.

Both parties are set to collaborate further in the coming week to discuss how the U.S. government can support Intel. The President indicated that the CEO would work with his cabinet members to propose suggestions within the next week. Intel, in a statement, described the meeting as "candid and constructive," expressing eagerness to work closely with the administration to "revitalize this great American company."

The political turmoil began last week when a letter from the Chairman of the Senate Intelligence Committee raised concerns about the CEO's past business activities, focusing on "security and integrity" issues. The President quickly followed up by publicly demanding the CEO's resignation. Intel had previously acknowledged violations of U.S. export controls during the CEO's tenure. In response, the CEO, who was born in Malaysia but has lived in the U.S. for four decades, refuted the allegations, emphasizing adherence to the highest legal and ethical standards.

This crisis management approach by the CEO reflects a strategic response to the "Trump spotlight," involving direct engagement with the White House and public alignment with the President's priorities. This strategy mirrors past actions by other business leaders, such as the CEO of Apple, who have used direct dialogue to resolve conflicts rather than engaging in public disputes. The CEO's proactive communication seems to have successfully moved Intel away from the center of the political storm, at least temporarily.

The significance of this White House meeting is underscored by Intel's current challenges and its pivotal role in the U.S. technology strategy. As a major beneficiary of the Biden administration's chip subsidy bill, Intel is grappling with severe financial hurdles, including persistent losses in its chip foundry business and limited gains from the AI infrastructure boom. Since taking over from the previous CEO in December last year, the current CEO has initiated cost-cutting measures, including layoffs and the abandonment of manufacturing projects in Europe.

More alarmingly, the CEO recently warned that if Intel's most advanced 14A manufacturing process fails to secure major clients, the company might withdraw from this competitive field. This potential withdrawal could have a significant impact on the global semiconductor industry and leave the U.S. without a crucial alternative to Taiwan Semiconductor Manufacturing Company in the domestic advanced chip manufacturing sector.