Trump Demands Intel CEO Resign Over Alleged China Ties

President Donald Trump has intensified scrutiny over Intel’s leadership, accusing the company’s chief executive officer, Lip-Bu Tan, of being “highly conflicted” and demanding his immediate resignation [1]. The comments, posted on Trump’s social media platform on Thursday, followed pressure from Republican Sen. Tom Cotton, who had earlier called for an investigation into Tan’s financial and professional ties to China [1].

Trump’s demand emerged amid growing concerns about potential conflicts of interest stemming from Tan’s extensive investment in Chinese technology and semiconductor firms. A Reuters investigation revealed that Tan, either directly or through his venture funds, has invested at least $200 million in 20 Chinese firms between 2012 and 2024. Some of these companies have ties to the Chinese People’s Liberation Army [1]. Cotton, in an open letter to Intel’s board, questioned whether the company could be trusted with nearly $8 billion in federal subsidies under the CHIPS and Science Act, and whether Tan had been required to divest his Chinese-related interests [1].

The controversy is compounded by Tan’s leadership of Cadence Design Systems before joining Intel, a company that recently admitted to violating U.S. export rules by providing technology to a Chinese military university. As a result, Cadence agreed to pay a $140 million fine [1].

Tan’s tenure at Intel, which began in March 2025, has already seen significant turbulence. He took over from Pat Gelsinger, who was reportedly forced out by the board over concerns about market share losses to competitors like Nvidia. Tan’s early days in the role saw Intel’s stock rise by as much as 15%, but by late July, the company had announced major layoffs and cost-cutting measures, with shares trading below their springtime level [1]. On Thursday, shares fell as much as 3% in premarket trading following Trump’s post.

Trump’s demand for Tan’s resignation occurs amid broader political and economic tensions over U.S. reliance on foreign technology. Earlier in the week, Trump announced a plan to impose a 100% tariff on imported computer chips, part of his broader strategy to reduce dependence on Chinese technology [1]. The move has raised new questions about the stability of Intel’s leadership and the company’s ability to regain its competitive edge in artificial intelligence and advanced semiconductor manufacturing.

Intel is currently in the process of restructuring its operations, with the recent decision to separate its networking division. The company has committed $100 billion to U.S. chip manufacturing and packaging, supported by nearly $8 billion in direct CHIPS Act funding [1]. However, several former Intel board members have criticized the company’s performance, pointing to missed deadlines, poor execution, and a misguided strategy as reasons for its declining market position [1].

Intel has not yet responded to requests for comment on Trump’s allegations or Cotton’s inquiry [1].

Source: [1] Trump accuses Intel CEO of being ‘highly conflicted,’ demands resignation as Tom Cotton highlights reporting into China ties (https://fortune.com/2025/08/07/trump-intel-ceo-resign-highly-conflicted-china-chips/)