Trump demands that Intel CEO resigns over China ties

US President Donald Trump on Thursday demanded the immediate resignation of new Intel CEO Lip-Bu Tan, calling him “highly conflicted” due to his ties to Chinese firms and raising doubts about plans to turn around the struggling American chip icon.

- ADITYA SONI

Reuters reported exclusively in April that Mr Tan invested at least $200 million in hundreds of Chinese advanced manufacturing and chip firms, some of which were linked to the Chinese military.

Trump's comments came a day after Reuters was first to report that Republican Senator Tom Cotton had sent a letter to Intel’s board chair with questions about Mr Tan’s ties to Chinese firms and a recent criminal case involving his former firm Cadence Design.

“The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem,’ Trump said in a post on his ‘Truth Social platform.

Intel shares closed down 3% on Thursday.

A leadership change could pile pressure on Intel, which is a pillar of US efforts to boost domestic chipmaking. Last year, it secured $8 billion in subsidies, the largest outlay under the 2022 Chips Act, to build new factories in Ohio and other states.

Mr Tan said he shared the president's commitment to advancing US national and economic security.

Intel’s board was “fully supportive” of the company’s work to transform its business and ramp up advanced chip manufacturing later this year, Mr Tan added in a statement posted on the company’s website.

“My reputation has been built on trust — on doing what I say I'll do, and doing it the right way... this is the same way I am leading Intel)” he said.

“We are engaging with the Administration to address the matters that have been raised and ensure they have the facts.”

‘UNFORTUNATE PRECEDENT’

Trump’s intervention marked a rare instance of a US president publicly calling for a CEO’s ouster and sparked debate among investors.