Trump Calls for Immediate Leadership Change
U.S. President Donald Trump publicly called for the resignation of Intel CEO Lip-Bu Tan, describing him as “highly conflicted” due to his ties to Chinese firms. The post caused Intel shares to fall nearly 3% in late morning trading. Trump’s comments came shortly after concerns were raised over Tan’s past investments and leadership at companies with links to Chinese military contractors.
Tan was appointed CEO in March after Intel dismissed Pat Gelsinger, who was removed before completing his four-year roadmap to restore Intel’s competitive edge. The company is considered a pillar of U.S. efforts to boost domestic chipmaking and was awarded $8 billion under the 2022 CHIPS Act to build new factories in Ohio and other states.
Investments in Chinese Firms Raise Concerns
Tan, through venture funds he founded or operated, invested at least $200 million in hundreds of Chinese advanced manufacturing and chip companies between March 2012 and December 2024. Several of these firms were reportedly connected to the Chinese military. Records show 20 investment funds and companies where Tan’s firm Walden is a joint owner with Chinese state entities, particularly in cities like Hangzhou, Hefei, and Wuxi.
Though a source said Tan has divested from these positions, many investments remained listed as active. This raised alarms over potential conflicts of interest, especially as Intel works closely with U.S. defense initiatives and seeks to restore leadership in chip production.
Legal and Political Fallout from Past Dealings
Tan previously served as CEO of Cadence Design Systems from 2008 through December 2021. During that time, Cadence sold software to a Chinese military university involved in nuclear simulations. The company recently agreed to plead guilty and pay more than $140 million to resolve U.S. charges related to those sales.
These developments have intensified criticism of Tan’s appointment. Intel’s position in the national technology strategy has added urgency to calls for a CEO with no perceived foreign entanglements. A White House official emphasized that leadership in “cutting-edge sectors” must be entrusted to individuals Americans can rely on.
Intel’s Struggles Amid Global Competition
Intel has lost significant ground to rivals like Nvidia and TSMC. It currently holds a weak position in the booming AI chip market and has lost share in both data centers and personal computers to AMD. Intel’s market value has fallen below $100 billion, while Nvidia has surged past $4 trillion.
Profit margins have dropped to about half of historical levels. Since taking over, Tan has reversed his predecessor’s manufacturing strategy, reduced Intel’s global workforce, and paused several factory projects. Notably, construction of Intel’s Ohio facility has been further delayed, now expected to complete around 2030 or 2031.
Ohio Senator Bernie Moreno said Intel has failed to meet its commitments and called for a fraud investigation at the state level.