Trump demands Intel CEO’s resignation over Chinese ties

Trump demands Intel CEO’s resignation over Chinese ties

US President Donald Trump has called on Intel CEO Lip-Bu Tan to resign immediately due to concerns about his ties to Chinese companies. Republican Senator Tom Cotton had previously raised questions about the security implications of Tan’s connections.

Intel responded with a statement emphasizing the company’s “deeply committed to the national security of the United States and the integrity of our role in the U.S. defense ecosystem.” The company said it would discuss the issues in a letter to the senator.

The timing of the controversy is particularly sensitive for Intel. The company has been struggling with financial problems and competitive pressure for months. Tan was appointed CEO in August to revive the company.

Trump announced his call on Truth Social. “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!” he wrote on Thursday.

The presidential statement followed shortly after a letter from Senator Tom Cotton to Intel’s chairman Frank Yeary. Cotton expressed concerns about Tan’s former positions at Chinese chip companies and a criminal investigation at his former employer Cadence Design.

Security concerns surrounding Secure Enclave program

In his letter, Cotton asked whether Intel’s board was aware of subpoenas sent to Cadence when Tan was CEO. He also wanted to know what measures had been taken to address concerns about Tan’s Chinese connections.

Intel’s role in the Secure Enclave program is particularly sensitive. This initiative under the Biden administration aims to ensure a secure supply chain for military microelectronics. Cotton emphasized that as a recipient of federal funding, Intel “is required to be a responsible steward of American taxpayer dollars.”

The situation illustrates how geopolitical tensions between the US and China are increasingly affecting the semiconductor industry. For Intel, which invests heavily in US chip production, Chinese connections among executives pose a significant risk to government contracts and funding.

Tip: Who is Lip-Bu Tan, the new Intel CEO?