Washington: President Donald Trump has called for the resignation of Intel’s CEO, Lip-Bu Tan, accusing him of having ties with China that could compromise the security of the United States. The demand, made through a social media post, is an unusual move from a sitting president towards a corporate executive.
According to BBC, Trump’s allegations center around Tan’s investments in companies linked to the Chinese military, a claim that aligns with growing concerns in Washington about business ties between the US and China in the tech sector. Lip-Bu Tan, who became the CEO of Intel in March, was tasked with revitalizing the company amidst increasing competition in the chip industry. Born in Malaysia and raised in Singapore, Tan is a naturalized US citizen and a respected figure in the semiconductor field.
In a recent briefing to investors, Tan announced plans to reduce Intel’s manufacturing investments in the US and elsewhere, aligning production with market demands. This strategic pivot comes on the heels of significant job cuts at Intel, as the company seeks to optimize operations.
The news of Trump’s demand caused Intel’s shares to drop over 3% by midday. This comes at a time when Trump is preparing to increase tariffs on the chip industry, a sector he has criticized in the past.
While investing in Chinese firms is not illegal for Americans, the US government has been tightening restrictions since Trump’s first term, aiming to limit technological ties with China under national security pretenses. Trump’s comments echo Republican Senator Tom Cotton’s recent concerns, which were expressed in a letter to Intel’s board. The letter questioned Tan’s ability to lead Intel responsibly, citing his previous role at Cadence Design Systems, a company fined by the US for violating export controls to China.
Intel has defended Tan, asserting his commitment to US national security and the company’s role in the defense ecosystem. Industry analyst Patrick Moorhead suggested that Trump’s stance might be a strategic move to exert pressure on Intel regarding its US investments and a potential collaboration with Taiwan-based TSMC.
Trump’s tactic of publicly criticizing business leaders is well-documented, yet demanding the resignation of a private company’s head is unprecedented. Moorhead noted that other tech leaders have navigated Trump’s critiques by promising substantial US investments.
In response to the backlash, the White House emphasized Trump’s dedication to protecting national and economic security, ensuring trust in the leadership of iconic American companies.
Tan’s alleged Chinese connections were highlighted in a recent congressional report and a Reuters investigation, which revealed his investments in Chinese companies, some linked to the military.
Republican Senator Bernie Moreno criticized Intel for delays in US chip manufacturing plans, echoing Trump’s concerns. The ongoing controversy adds to the complex challenges facing Intel and the broader US chip manufacturing industry.
“Intel has been viewed as a key player in expanding America’s chip production capabilities but has faced hurdles,” stated Janet Egan from the Center for a New American Security. “Stable leadership is crucial for scaling up these efforts.”