Trump calls for Intel CEO’s immediate resignation over China investments
The US President slams chip chief as “highly conflicted” after reports of investments linked to Chinese military.
President Donald Trump on Thursday demanded the immediate resignation of Intel CEO Lip-Bu Tan, claiming he is “highly CONFLICTED and must resign, immediately. There is no other solution to this problem,” Trump wrote in a post on Truth Social.
Intel did not immediately respond to a request for comment.
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Donald Trump and Intel CEO Lip-Bu Tan.
(Photos: REUTERS/Laure Andrillon REUTERS/Jonathan Ernst )
In April, Reuters reported that Tan, either personally or through venture funds he has founded or manages, has invested in hundreds of Chinese companies, some of which are reportedly linked to the Chinese military. Between March 2012 and December 2024, Tan invested at least $200 million in Chinese firms involved in advanced manufacturing and semiconductors.
Senator Tom Cotton wrote to Intel’s chair to “express concern about the security and integrity of Intel’s operations and its potential impact on U.S. national security.”
Earlier this week it became once more clear that Intel’s efforts to restore its technological edge and compete with Taiwan’s TSMC are facing significant challenges. The company’s next-generation 18A manufacturing process, central to its plan to regain leadership in chip production, has reportedly hit quality issues, two sources familiar with the matter told Reuters.
Intel has spent billions on developing 18A technology, including constructing or upgrading several factories. The goal is to become a serious contender in contract manufacturing while continuing to design chips in-house. The success of Intel’s U.S. manufacturing revival and foundry ambitions now hinges on whether it can close the gap with TSMC and deliver reliable results at scale.
Also this week, Fitch Ratings downgraded Intel by one notch, assigning a negative outlook to the company’s credit rating. Intel’s long-term issuer default rating was lowered from BBB+ to BBB, placing it just two steps above non-investment grade (junk) status.
The downgrade reflects Fitch’s assessment that Intel is facing mounting challenges in maintaining demand for its products, particularly amid intensifying competition from rivals including NXP Semiconductors, Broadcom, and Advanced Micro Devices (AMD).
