intel

By&nbspAP with Eleanor Butler

Published on
08/08/2025 – 9:20 GMT+2

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Intel shares slumped on Thursday after President Donald Trump said in a social media post that the chipmaker’s CEO needed to resign.

“The CEO of Intel is highly conflicted and must resign, immediately,” Trump posted on Truth Social. “There is no other solution to this problem. Thank you for your attention to this problem!”

Trump made the post after Senator Tom Cotton sent a letter to Intel Chairman Frank Yeary, expressing concern over CEO Lip-Bu Tan’s investments and ties to semiconductor firms that are reportedly linked to the Chinese Communist Party and the People’s Liberation Army. Cotton asked the board whether Tan had divested his interests in these companies to eliminate any conflicts of interest.

It’s not immediately clear if Tan, who took over as Intel’s CEO in March, has done so.

In a statement, Intel said it was “deeply committed to advancing US national and economic security interests”. The firm said it was making “significant investments aligned with the President’s America First agenda”.

Cotton’s allegations

“In March 2025, Intel appointed Lip-Bu Tan as its new CEO,” Cotton wrote in the letter. “Mr. Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms. At least eight of these companies reportedly have ties to the Chinese People’s Liberation Army.”

Cotton specifically called out Tan’s recent leadership of Cadence Design Systems in the letter. According to the US Department of Justice, Cadence, agreed in July to plead guilty to resolve charges that it violated export controls rules to sell hardware and software to China’s National University of Defense Technology, which is linked to the Chinese military.

Tan was the CEO of Cadence when the company violated the rules between 2015 and 2021.

The US Department of Commerce’s Bureau of Industry and Security also fined Cadence $95 million for the same breaches, saying Cadence admitted that “employees of its Chinese subsidiary knowingly transferred sensitive US technology to entities that develop supercomputers in support of China’s military modernisation and nuclear weapons programs.”

Cadence did not immediately respond to AP requests.

The digital race

Tan previously launched the venture capital firm Walden International in 1987 to focus on funding tech start-ups, including chip makers.

China’s state media has described Tan as “actively” devoted to Chinese and Asian markets, having invested not only in the Taiwan Semiconductor Manufacturing Company, but also China’s state-owned enterprise SMIC, which seeks to advance China’s chipmaking capabilities.

The demands made by Trump and Cotton come as economic and political rivalries between the US and China increasingly focus on the competition over chips, AI and other digital technologies that experts say will shape future economies and military conflicts.

Cotton, the chairman of the Senate Intelligence Committee, has raised concerns that Chinese spies could be working at tech companies and defence contractors, using their positions to steal secrets or plant digital backdoors that give China access to classified systems and networks.

On Thursday the Arkansas Republican wrote to the Department of Defense, urging Defense Secretary Pete Hegseth to ban all non-US citizens from jobs allowing them to access DoD networks. He has also demanded an investigation into Chinese citizens working for defence contractors.

“The US government recognises that China’s cyber capabilities pose one of the most aggressive and dangerous threats to the United States, as evidenced by infiltration of our critical infrastructure, telecommunications networks, and supply chains,” Cotton wrote in an earlier letter, calling on the Pentagon to conduct the investigation.

National security officials have linked China’s government to hacking campaigns targeting prominent Americans and critical US systems.

“US companies who receive government grants should be responsible stewards of taxpayer dollars and adhere to strict security regulations,” Cotton wrote on the social platform X.

Playing catch-up

Intel had been a beneficiary of the Biden administration’s CHIPS Act, receiving more than $8 billion (€6.9bn) in federal funding to build computer chip plants around the country.

Shares of the California company slid 3.5%, while markets, particularly the tech-heavy Nasdaq, gained ground.

Founded in 1968 at the start of the PC revolution, Intel missed the technological shift to mobile computing triggered by Apple’s 2007 release of the iPhone, and it has lagged behind more nimble chipmakers. Intel’s troubles have been magnified since the advent of artificial intelligence — a booming field where the chips made by once-smaller rival Nvidia have become tech’s hottest commodity.

Intel is shedding thousands of workers and cutting expenses, including some domestic semiconductor manufacturing capabilities, as Tan tries to revive the fortunes of the struggling chipmaker.

Chipmaker Intel is the latest tech company facing political pressure from President Trump.

On Thursday, Trump called for the immediate resignation of Intel Chief Executive Lip-Bu Tan, who took the helm in March to turn around the beleaguered chipmaker.

“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!” Trump wrote in a Truth Social post.

Trump didn’t say what the conflicts were in his post, but his remarks came after Sen. Tom Cotton (R-Ark.) sent a letter to Intel’s board, expressing national security concerns about Tan’s reported ties to Chinese companies. Cotton cited a report from Reuters that said Tan has invested in more than 600 Chinese firms and some of them have links to the country’s military.

Trump’s call for Tan’s resignation adds to a list of issues Intel already has to deal with.

The 57-year-old tech company, once the most valuable U.S. chipmaker, is trying to keep up as the race to dominate artificial intelligence escalates. The Santa Clara, Calif., company has been losing money and has seen its stock plunge while it falls behind rivals such as Nvidia and Advanced Micro Devices.

As of Thursday morning, Intel’s share price was down 2% to $19.92. The company didn’t immediately respond to a request for comment.

Trump said Wednesday during an event in which Apple announced an additional $100-billion investment in the United States that he plans to place a tariff on semiconductors, but that there won’t be a charge for companies building in the United States.

While he praised companies such as Apple and Nvidia, he criticized Intel.

“Intel was just taken over the coals. They were taken to the cleaners, frankly, and moved to other places, in particular Taiwan,” Trump said at the event.

Intel, known for making the “brains” that power computers, has been investing heavily in its foundry business, taking on Taiwan Semiconductor Manufacturing Co., which makes chips for companies including Apple and Nvidia. During the Biden administration, the U.S. Department of Commerce awarded Intel roughly $8 billion to support manufacturing and advanced packaging projects in the United States.

United States President Donald Trump has fired off a social media message calling on the head of the US technology firm Intel to resign from his post as chief executive officer.

Trump’s decision to denounce Intel CEO Lip-Bu Tan on Thursday morning sent the company’s stocks tumbling, amid the uncertainty about the future of its leadership.

“The CEO of INTEL is highly CONFLICTED and must resign, immediately,” Trump wrote. “There is no other solution to this problem. Thank you for your attention to this problem!”

Trump’s post appeared to be a response to reports that Tan has invested nearly $200m in Chinese technology manufacturing and chip firms, including some with links to the country’s military.

But the president’s social media message also raises concerns about his apparent willingness to get involved in the affairs of private companies, even calling for dramatic changes in leadership and direction.

Scrutiny on Tan’s ties to China

Tan, a longtime technology investor, is relatively new to his post. He was appointed as Intel’s CEO on March 12, and he also serves on the company’s board of directors.

Previously, Tan served in leadership positions at the software company Cadence Design Systems, and he was a founding partner for the venture capital firm Walden Catalyst Ventures.

His personal investments — and the investments of the venture funds he manages — caught the public’s attention shortly after his appointment at Intel, though.

In April, the news agency Reuters reported that, between March 2012 and December 2024, Tan invested in Chinese firms that create technology for the People’s Liberation Army, China’s armed forces.

For some US politicians, that raised a conflict of interest.

On Wednesday, for instance, Republican Senator Tom Cotton of Arkansas posted a letter on social media written to the chairman of Intel’s board of directors, Frank Yeary.

In it, he demanded more information about Tan’s hiring and his investments in China.

Cotton pointed out that, on July 28, Cadence Design Systems agreed to plead guilty to federal charges concerning the sale of technology and intellectual property to China’s National University of Defense Technology.

That plea deal resulted in criminal and civil penalties of more than $140m.

“I write to express concern about the security and integrity of Intel’s operations and its potential impact on US national security,” Cotton wrote in his letter to Yeary.

“Mr Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms. At least eight of these companies reportedly have ties to the Chinese People’s Liberation Army.”

In an accompanying message to his social media followers, Cotton added that Intel “owes Congress an explanation”. Intel and Tan have yet to respond to the concerns.

Trump pushes ‘America First’ plan

For years, the US and China have been locked in tense competition for economic and political dominance, and the US has repeatedly accused China of attempting to poach American innovation and spy on its technology firms.

China, meanwhile, has denied such allegations, describing them as part of a US smear campaign.

Founded in 1968, Intel has long been a flagship US technology firm, known for producing computer parts like microprocessors. But in recent decades, the company has struggled to keep pace with its competitors, particularly as artificial intelligence (AI) has transformed Silicon Valley, Intel’s longtime home.

Trump, however, has sought to bolster domestic manufacturing with his “America First” economic agenda, which leverages tariffs to discourage the import of products from abroad.

On Tuesday, the Republican leader even said he planned to impose 100-percent tariffs on foreign chips and semiconductors sold in the US.

But Trump has faced criticism for testing the boundaries of his executive power — and, in some cases, seeking to impose his will on the running of private companies.

Since taking office for a second term, for instance, Trump has withheld federal funds from private universities in order to extract guarantees that those institutions would eliminate their diversity initiatives and implement disciplinary reforms, among other demands.

In an interview with Reuters, analysts appeared split over whether Trump was overplaying his hand.

“Many investors likely believe that President Trump has his hand in too many cookie jars, it’s just another signal that he’s very serious about trying to bring business back to the US,” said David Wagner, the head of equity and a portfolio manager at Aptus Capital Advisors, which has invested in Intel.

Meanwhile, Phil Blancato, the CEO of Ladenburg Thalmann Asset Management, told Reuters that Trump ousting Tan could have a chilling effect on US business.

“It would be setting a very unfortunate precedent,” Blancato said. “You don’t want American presidents dictating who runs companies, but certainly his opinion has merit and weight.”

It is unclear how Trump’s pressure campaign against Tan may affect Intel’s future.

Last year, Intel received $8bn in subsidies under the 2022 CHIPS and Science Act, to build further chip manufacturing plants in the US.

Aug. 7 (UPI) — President Donald Trump called for Lip-Bu Tan, the chief executive officer of the Intel technology company to step down Thursday.

“The CEO of INTEL is highly CONFLICTED and must resign, immediately,” Trump posted to his Truth Social account. “There is no other solution to this problem.”

Although Trump hasn’t clearly explained the reason behind his declaration, Sen. Tom Cotton, R-Ark., did pen a letter Tuesday to Intel’s Chairperson Frank Yeary in regard to Intel Tan, who was appointed in March.

“I write to express concern about the security and integrity of Intel’s operations and its potential impact on U.S. national security,” Cotton wrote. “Mr. Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms.”

Tan served as the CEO of Cadence Design Systems, a tech and software company, from 2009 to 2021, which was charged in July by the U.S. Department of Justice with conspiracy to commit export control violations. The charges are based on actions that occurred between February 2015 and April 2021.

Cadence has since pleaded guilty, and under a plea agreement will pay criminal penalties of around $118 million to resolve the charges, as well as more than $95 million in civil penalties.

Cotton noted in the letter that Tan was the CEO during the period of admitted criminal activity, and also that Intel was granted almost $8 billion under the CHIPS and Science Act, which funds the production of semiconductors.

“Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations,” Cotton further wrote. “Mr. Tan’s associations raise questions about Intel’s ability to fulfill these obligations.”

Cotton then requested information regarding Intel’s knowledge of the investigation of Cadence and if Tan’s activities as Candence CEO were vetted, and if Tan was required to divest from any semiconductor firms with connections “to the Chinese Communist Party or the People’s Liberation Army and any other concerning entities in China that could pose a conflict of interest for Intel’s CEO.”

Intel stock opened down and continued to drop Thursday from an after-market high Wednesday of $20.99 to $19.70 at 10:55 a.m. EDT.