- President Donald Trump called for Intel CEO Lip-Bu Tan to step down immediately, citing his "$200 million+ investments" in Chinese companies linked to the PLA and calling his financial ties "highly conflicted."
- Sen. Tom Cotton (R-AR) questioned Intel's board about whether they were aware of Tan's past role at Cadence Design Systems, which had paid $140 million in fines for illegally selling software to a Chinese military university involved in nuclear weapons research.
- Intel received $20 billion in federal grants under the 2022 CHIPS Act to bolster U.S. semiconductor production but faces declining competitiveness under Tan, with delayed factory projects and workforce cuts as rivals (TSMC, Nvidia) surge ahead.
- Intel defends Tan, asserting his commitment to U.S. security, but Reuters reports his Chinese investments remain active – raising doubts about his divestment from PLA-linked firms.
- The controversy arises as the Trump administration escalates efforts to counter China's semiconductor advances, with experts warning Tan's leadership risks undermining Intel's role in securing America's tech supply chain.
U.S. President Donald Trump called for the immediate resignation of Intel CEO Lip-Bu Tan, citing his "highly conflicted" investments in companies linked to the Chinese People's Liberation Army (PLA).
Trump's demand, posted on Thursday, Aug. 7, on Truth Social, followed revelations that Tan had poured at least $200 million into hundreds of Chinese advanced manufacturing and semiconductor companies. Some of these firms had ties to Beijing's defense sector, sparking the president's call for Tan to "resign, immediately."
Trump's statement came hours after Sen. Tom Cotton (R-AR) sent a letter to Intel's board questioning Tan's past role at Cadence Design Systems. The San Jose, California-based company recently agreed to pay $140 million in fines for illegally selling software to a Chinese military university involved in nuclear weapons simulations.
Cotton demanded transparency on whether Intel's board knew about the Cadence investigation before hiring Tan. His letter also inquired whether Tan, a Malaysian-born Chinese American, had fully divested from Chinese chip firms – especially those connected to Beijing's defense apparatus. (Related: TECH TREASON: U.S. tech giants Intel, Microsoft, GE providing "direct support" to Chinese military, ChiCom state security apparatus.)
Intel, a cornerstone of U.S. semiconductor production, received $20 billion in federal grants under the 2022 CHIPS and Science Act. The grants sought to boost domestic chip manufacturing amid growing competition with China.
Tan assumed leadership in March, succeeding Pat Gelsinger, and has since slashed Intel's workforce by 22 percent while delaying construction of key fabrication plants in Ohio and abroad. Despite these measures, Intel continues to lose ground to Taiwan's TSMC and Nvidia, which dominate the AI chip market.
Silicon Valley vs. Silicon Dragon
Intel defended Tan, stating he and the company remain "deeply committed to U.S. national security." Tan echoed this in a statement, declaring his leadership is built on trust and pledging to work with the administration to "address concerns." However, Chinese corporate databases reviewed by Reuters still list many of Tan's investments as active, casting doubt on claims he fully severed ties.
The controversy arrives as the second Trump administration accelerates efforts to counter China's chip dominance – punctuated by sweeping export controls on advanced semiconductors. Experts warn Tan's continued leadership could undermine Intel's role in securing America's semiconductor supply chain.
"Trump's intervention sets a troubling precedent, but his concerns are valid," said Ladenburg Thalmann CEO Phil Blancato.
For Intel, already struggling to reclaim its technological edge, the political firestorm adds pressure at a critical juncture. Once synonymous with Silicon Valley's chip supremacy, the company now faces skepticism over whether Tan can steer its revival without compromising U.S. security interests.
As scrutiny mounts, shareholders and policymakers await Intel's next move. For now, the standoff underscores the high-stakes geopolitics reshaping the global semiconductor industry – and America's determination to guard its technological crown jewels.
Watch this Fox Business report about President Trump calling for the resignation of Intel CEO Lip-Bu Tan.
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