U.S. President Donald Trump has called for the resignation of Intel CEO Lip-Bu Tan, citing reports of his alleged ties to China. The demand follows a letter from Republican Senator Tom Cotton, who raised concerns about Tan’s potential connections to Chinese military-linked companies and questioned the CEO’s integrity. Cotton wrote to Intel board chair Frank Yeary, asking whether the board had required Tan to fully disclose his ties and divest from the companies, given Intel’s federal funding under a U.S. defense program.
Tan took over the chipmaker in March as the company struggled to recover from falling sales. In a post on Truth Social, Trump called Tan ‘conflicted’ and claimed he must step down. ‘The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem,’ he wrote, without elaborating.
The controversy has led to a significant drop in Intel’s stock price, with shares falling nearly 5% in pre-market trading after Trump’s post. However, the stock later recovered. Intel and Tan have not responded to media requests for comment. The senator also highlighted Tan’s previous role at Cadence Design, a California software firm that recently pleaded guilty to violating U.S. export laws by selling chip designs to China’s National University of Defense Technology (NUDT).
The allegations come amid escalating tensions between Washington and Beijing. While both nations have long competed in the tech and semiconductor sectors, their rivalry turned into a full-scale trade war after Trump imposed sweeping tariffs on Chinese imports earlier this year, accusing Beijing of unfair trade practices. A temporary deal delayed most measures until August 12, but this week Trump threatened additional tariffs over China’s energy ties with Russia. China has slammed Trump’s tariff threats as violating international trade rules.
The situation has sparked widespread discussion about national security concerns and the influence of foreign interests in U.S. technology companies. Analysts warn that such allegations can have serious implications for both corporate governance and the broader U.S.-China trade relationship. As the investigation continues, Intel faces mounting pressure to clarify its position and address the concerns raised by lawmakers and the public.