Donald Trump has called for Intel CEO Lip-Bu Tan to resign, claiming Tan is “highly conflicted” due to financial and professional ties to Chinese tech companies. The demand follows a letter from Senator Tom Cotton to Intel’s board, warning that Tan’s past investments—especially in Chinese semiconductor and AI firms—pose national security risks. Cotton also cited Tan’s history leading Walden International’s China ventures and his prior role as CEO of Cadence Design Systems, which admitted to past export control violations involving China’s defense sector (before Tan joined Intel).
Intel has not responded publicly, but its stock fell 3–5% in pre-market trading. The controversy comes amid deep financial troubles: in Q2 2025, Intel reported a $2.9 billion net loss, including major restructuring costs, and announced layoffs of 15% of its global workforce (~15,000 jobs) along with canceled chip factory projects. Under Tan’s leadership since March 2025, the company has been cutting costs while struggling to compete in the AI chip market against Nvidia, TSMC, and AMD. The political stakes are heightened by Trump’s new 100% tariff on imported semiconductors, exempting only firms committed to US manufacturing.
