Washington: President Donald Trump has called on the head of US chipmaker Intel, Lip-Bu Tan, to resign "immediately," accusing him of having problematic ties to China. In a social media post, Trump alleged that Tan was "highly conflicted," referencing purported investments in companies linked to the Chinese military. This move is unusual as it is rare for a sitting president to demand the resignation of a corporate executive.
According to BBC, Lip-Bu Tan, who was appointed in March, was tasked with revitalizing Intel, a leading figure in the US semiconductor industry that has faced stiff competition in recent years. Tan, a naturalized US citizen originally from Malaysia and raised in Singapore, is a renowned venture capitalist with significant experience in the semiconductor field. Recently, Tan announced plans to reduce Intel's investments in manufacturing, including within the US, to better align with customer demand.
Intel has already implemented significant workforce reductions this year as part of a strategy to optimize the company's size. Following Trump's criticisms, Intel's shares fell by more than 3% by midday. Trump's critique comes as he prepares to increase tariffs on the chip industry, continuing his longstanding criticism of the firm.
While it is not illegal for Americans to invest in Chinese companies, Washington has intensified its restrictions since Trump's first term, aiming to sever business connections between the US and China, particularly in advanced technology sectors due to national security concerns. Trump's comments echoed concerns raised by Republican Senator Tom Cotton, who questioned Tan's connections, suggesting they might affect Intel's responsibility in managing American taxpayer dollars and adhering to security regulations.
Cotton highlighted Tan's previous role as CEO of Cadence Design Systems, a firm that recently pled guilty and agreed to a $140 million fine for its Chinese subsidiary's dealings with China's National University of Defense Technology, violating US export controls. Tan was not personally indicted.
In response, Intel defended Tan, stating that both he and the company remain "deeply committed to the national security of the US and the integrity of our role in the US defense ecosystem." Industry analyst Patrick Moorhead suggested that Trump's focus on Tan's China ties might be a tactic to exert pressure on Intel concerning other issues, such as its US investments and a possible partnership with Taiwanese firm TSMC, which is purportedly backed by the White House.
Trump's demand for Tan's resignation is unprecedented, even among his frequent public criticisms of business leaders. Moorhead noted that other tech executives have managed to appease Trump by pledging significant US investments, suggesting that Intel may have underestimated the importance of maintaining a visible relationship with the White House.
In defense of Trump's actions, the White House told the BBC that the President is committed to protecting national and economic security, ensuring that leading American companies in critical sectors are managed by trustworthy individuals. Tan's connections to China had previously been highlighted in a 2024 congressional report and a Reuters investigation, which revealed investments in several Chinese companies, including those linked to the military.
Republican Senator Bernie Moreno, a Trump supporter, also criticized Intel on Thursday for delays in its US chip manufacturing plans. This clash with Trump could exacerbate the challenges faced by Intel and the broader US chip manufacturing industry. Janet Egan, a senior fellow at the Center for a New American Security, emphasized the importance of stable leadership at Intel to support the expansion of US chip production capacity.