Facing backlash over alleged China ties, Intel CEO lands in Trump’s crosshairs.
US President Donald Trump has called for the resignation of Intel CEO Lip-Bu Tan, alleging ties to the Chinese Communist Party (CCP). The accusation, posted on Truth Social, sent Intel’s shares down more than 3% in early trading.
“The CEO of Intel is highly CONFLICTED and must resign, immediately,” Trump wrote. “There is no other solution to this problem.”
The move comes just a day after Trump announced plans to impose a 100% tariff on imported semiconductors and chips, excluding companies like Taiwan Semiconductor Manufacturing Co. (TSMC) and Apple, which have committed to expanding US chip production. Apple CEO Tim Cook recently pledged $100 billion in domestic chip investment.
Trump’s comments echo concerns raised by Republican Senator Tom Cotton, who wrote to Intel’s board questioning Tan’s alleged investments in Chinese companies tied to the CCP and the People’s Liberation Army (PLA). Cotton cited Tan’s previous leadership at Cadence Design Systems, which reportedly sold products to China’s National University of Defense Technology, violating US export controls.
In response, Intel reaffirmed its commitment to US national and economic security. “Intel has been manufacturing in America for 56 years,” the company said, noting its alignment with the America First agenda.
Tan took the helm at Intel in March to lead a turnaround. He has since focused on cutting costs and selling off non-core assets. Under the Biden administration, Intel received about $8 billion from the Chips and Science Act to bolster US chip manufacturing.
Meanwhile, Trump is pushing to repeal the Act, favouring tariffs over subsidies as a more effective incentive to boost domestic semiconductor production.
