KUALA LUMPUR, August 7– U.S. President Donald Trump has called for the immediate resignation of Intel CEO Lip-Bu Tan, citing serious concerns over his alleged financial ties to Chinese firms. Trump, posting on his Truth Social platform, said Tan is “highly conflicted” and declared that “there is no other solution to this problem.”
The announcement triggered a nearly 5% drop in Intel shares during premarket trading. The controversy follows a letter from Republican Senator Tom Cotton to Intel’s board, raising concerns about Tan’s connections and a recent criminal case involving his former company, Cadence Design Systems.
According to Reuters, Tan—either personally or through venture funds he controls—has invested over $200 million in hundreds of Chinese tech and chip companies, including some with links to the Chinese military. The report also noted that Cadence Design pleaded guilty last week to illegally exporting technology to a Chinese military university while Tan was CEO.
Intel has yet to respond publicly to the matter. Tan, who took over as Intel CEO in March 2025, has been leading aggressive cost-cutting efforts, including layoffs and project cancellations, as part of a broader turnaround plan amid fierce competition from TSMC and Nvidia in the global chip market.
The situation raises growing questions about national security and foreign influence in U.S. tech leadership. Senator Cotton stated that Intel must act as a responsible steward of American taxpayer investments, implying Tan’s background could undermine that trust.
Intel, once the dominant chipmaker in the world, is undergoing a strategic overhaul to regain its position amid declining revenue and missed opportunities in the booming AI chip sector.
