Trump Demands Intel CEO Resign Over China Ties, Citing National Security Concerns
- The New York Editorial Desk - Arif
- Aug 7
- 3 min read
Tone & Political Bias: Moderately Right-Leaning
Why: The article centers on Donald Trump's national security-driven criticism of a business executive with links to China, highlighting concerns over foreign influence in U.S. tech. The framing supports Trump’s viewpoint without a substantial counterbalance.
What Happened
President Donald Trump on Thursday called for the immediate resignation of Intel CEO Lip-Bu Tan, citing what he described as serious conflicts of interest stemming from Tan’s past investments in Chinese tech firms.
Trump made the demand publicly via his Truth Social platform, claiming Tan is "highly conflicted" and unfit to lead the U.S. chipmaking giant. The statement sent Intel shares down nearly 3% in late-morning trading.
Background on Tan's Investments
Reuters previously reported that Tan, through his venture capital firm Walden International and related funds, invested over $200 million in hundreds of Chinese chip and manufacturing companies. Some of these firms were identified as having links to the Chinese military.
Intel responded by stating that both the company and its CEO remain committed to U.S. national security and their role in the defense sector.
Senator Tom Cotton had also raised concerns this week, sending a letter to Intel’s board questioning Tan’s business connections in China and referencing a recent legal case involving his former company, Cadence Design.
Legal Trouble from Past Role at Cadence
Tan was CEO of Cadence Design from 2008 through 2021. The company recently agreed to plead guilty and pay more than $140 million to settle U.S. charges related to sales of chip design software to a Chinese military university involved in nuclear weapons simulation.
The charges stem from sales made during Tan’s tenure. While Tan has not personally been charged, the timing has fueled concerns about his suitability to lead a company so heavily involved in national security-related technologies.
Intel’s Current Challenges
Intel has been under significant pressure for years. Once the leader in chipmaking, it has lost ground to rivals like Taiwan’s TSMC and now lags in the rapidly growing market for artificial intelligence chips, dominated by Nvidia.
The company’s profit margins have dropped to about half of historic levels, and it has been steadily losing market share in both data centers and personal computing to AMD.
Last year, Intel received $8 billion in subsidies under the 2022 CHIPS Act to help build new domestic factories, including a major project in Ohio. However, that factory’s timeline has slipped considerably and is now projected for completion around 2030 or 2031.
Ohio Senator Bernie Moreno called for a fraud investigation, stating that Intel had failed its commitments to the state.
Recent Leadership Changes
Tan took over as Intel’s CEO in March, replacing Pat Gelsinger, who was dismissed before completing his strategic roadmap to regain technological leadership.
Under Tan, Intel has reversed several of Gelsinger’s strategies:
Workforce reductions have accelerated.
Global factory expansions have been paused.
Some high-profile chip manufacturing plans have been slowed or shelved.
Reuters previously reported that Intel's production process improvements were facing serious quality issues, raising doubts about its ability to regain a competitive edge in high-performance chip production.
Trump’s Unusual Intervention
Trump’s demand marks a rare moment where a U.S. president has openly called for the resignation of a corporate executive by name. It has prompted debate over the appropriate level of political involvement in corporate governance.
Analyst reactions have been mixed:
Some investors caution against setting a precedent where political figures publicly pressure companies to remove executives.
Others argue that Trump’s move reflects his broader effort to re-center American manufacturing and technology away from Chinese influence.
David Wagner of Aptus Capital Advisors said the statement signals how serious Trump is about reshoring U.S. business interests, while analyst Stacy Rasgon of Bernstein noted that Tan’s lack of personal ties to Trump may have made him more vulnerable to criticism.
Intel and Tan have not issued direct comments on Trump’s statement as of the time of reporting.
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