President Donald Trump called for the immediate resignation of Intel’s new CEO, Lip-Bu Tan, on August 7, 2025, citing conflicts of interest due to Tan’s alleged $200 million investments in Chinese chip companies, as reported by Reuters. In a Truth Social post, Trump declared, “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem! Thank you for your attention to this problem!” The demand followed a letter from Republican Senator Tom Cotton to Intel’s board chair, Frank Yeary, on August 6, questioning Tan’s ties to Chinese firms and their potential impact on U.S. national security, per BusinessToday.
Tan, who took the helm at Intel in March 2025, has invested in hundreds of Chinese tech firms, including at least eight linked to the People’s Liberation Army, through his venture firm Walden International and Hong Kong-based entities between March 2012 and December 2024, according to a Reuters review of corporate filings. Intel, a key player in the U.S. Secure Enclave program to safeguard the microchip supply chain for defense, faces heightened scrutiny over Tan’s past. “Intel and Mr. Tan are deeply committed to the national security of the United States and the integrity of our role in the U.S. defense ecosystem,” an Intel spokesperson told Reuters, noting the company would address Cotton’s concerns directly.
Cotton’s letter also raised questions about Tan’s tenure as CEO of Cadence Design from 2008 to 2021, during which the company faced subpoenas and recently agreed to pay over $140 million to settle charges for selling chip design software to a Chinese military university, per Reuters. While U.S. citizens can legally invest in Chinese firms not on the Treasury’s Chinese Military-Industrial Complex Companies List, Cotton asked if Intel’s board required Tan to divest from such investments, especially given Intel’s federal funding under the CHIPS Act, per Investing.com.
Key points of the controversy include:
- Investments in China: Tan invested $200M in Chinese chip firms, some with military ties.
- National Security Concerns: Intel’s role in the Secure Enclave program raises stakes.
- Cadence Case: Tan’s former firm settled for $140M over sales to a Chinese military entity.
Intel’s stock fell 3.8% after Trump’s statement, extending premarket declines, per Yahoo Finance. Tan, a veteran Silicon Valley investor, reportedly divested some Chinese holdings, though Reuters could not confirm the extent as of April 2025. The situation adds pressure to Intel’s strategic reset, which includes cutting its workforce to 75,000 by year-end, a 22% reduction, and halting some factory projects to regain its edge against rivals like TSMC, per Reuters. As tensions rise, Tan’s leadership faces a critical test.
Sources: Reuters, BusinessToday, Investing.com, Yahoo Finance
