Silicon Valley chip maker Intel says it cut about 15 percent of its 'core workforce' in the recently ended quarter
AFP

President Donald Trump has publicly called for the resignation of Intel CEO Lip‑Bu Tan, accusing him of having deep financial entanglements with Chinese companies that pose a national security threat.

In a post shared Thursday morning on Truth Social, Trump wrote, "The CEO of Intel is highly CONFLICTED and must resign, immediately. There is no other solution to this problem."

According to Reuters, the former president's demand came in the wake of mounting scrutiny over Tan's past investments in Chinese semiconductor firms. A letter penned by Senator Tom Cotton (R-Ark.) to Intel's board chairman, Frank Yeary, alleged that Tan had invested over $200 million into hundreds of Chinese tech firms—some reportedly linked to China's military.

As reported by The Guardian, many of these investments were made while Tan was leading Walden International and Cadence Design Systems, companies that have done extensive business with Chinese state-linked entities. Cadence recently settled a criminal export control case involving unauthorized technology transfers to Chinese military institutions.

The New York Post also highlighted that Tan, who took over as Intel CEO in March 2025, has long-standing business ties in China and sits on the board of at least one Chinese firm connected to state-backed tech efforts. These associations have raised bipartisan concerns amid the Biden and Trump administrations' parallel efforts to decouple U.S. tech from Chinese influence.

In a statement provided to Channel News Asia, an Intel spokesperson said:

"Intel and Mr. Tan are deeply committed to the national security of the United States and fully support our government's efforts to protect domestic technology."
The company did not directly address the investment allegations but reaffirmed its cooperation with U.S. regulatory authorities.

Intel shares fell roughly 3.6% in early trading Thursday, as investors reacted to the political pressure and uncertainty around leadership. According to Investors Business Daily, the drop followed broader unease over new 100% tariffs imposed on Chinese chips, announced by Trump just one day earlier as part of his ongoing 2024 campaign platform.

The Wall Street Journal noted that some analysts are concerned the CEO controversy could delay Intel's rollout of key semiconductor projects, especially given its reliance on federal funding through the CHIPS and Science Act.

Lip‑Bu Tan, a Malaysian-born American businessman, was named Intel's CEO five months ago and immediately launched a cost-cutting campaign to revive the company's global competitiveness. As reported by TechCrunch, his restructuring efforts include workforce reductions of up to 22% and the shelving of certain fab expansions in Oregon and Ohio.

Intel has received nearly $20 billion in federal grants and loans since 2023 under the CHIPS Act, intended to bolster domestic semiconductor production. Now, the question of whether a CEO with such a vast investment history in China should be managing that taxpayer-backed effort is at the center of a political firestorm.

According to Bloomberg, Intel's board has not issued any public statement regarding Tan's future, though sources close to the company say emergency meetings have been held this week to discuss the issue. Meanwhile, Republican lawmakers are reportedly preparing to launch a congressional inquiry into whether any CHIPS Act funds were misused.

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