U.S. President Donald Trump has publicly demanded the resignation of Intel CEO Lip-Bu Tan, citing what he calls “highly conflicted” ties to Chinese companies.
The call has sent shockwaves through the tech and investment communities, triggering a notable drop in Intel’s stock price.
In a post on his Truth Social platform Thursday morning, Trump wrote:
“The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.”
This statement comes amid heightened scrutiny from U.S. lawmakers, especially Republican Senator Tom Cotton, who recently wrote to Intel’s board raising national security concerns about Tan’s professional history.
Cotton referenced Tan’s past investments in Chinese tech firms—some of which are allegedly linked to the Chinese military—and export control violations by Cadence Design Systems during his tenure as chairman.
Stock Market Reacts Swiftly
Intel’s shares fell sharply following Trump’s statement, tumbling by 4.1% in premarket trading. The drop reflects investor anxiety over potential leadership instability and growing bipartisan scrutiny of foreign ties in the semiconductor sector—a vital part of U.S. national security.
“This level of political interference in corporate governance is rare, and it clearly spooked the markets,” said Emily Jones, a semiconductor analyst at Raymond Capital. “Investors are now watching Intel’s board for any response.”
Tan’s Background Under the Microscope
Lip-Bu Tan was appointed CEO of Intel in March 2025, becoming the first Asian-American to lead the chipmaking giant.
He is a veteran of the semiconductor industry, having served as chairman of Cadence and founded venture capital firm Walden International. However, his extensive ties to Asian markets are now drawing increased scrutiny.
Senator Cotton’s letter accuses Tan of having “deep financial interests” in Chinese tech firms and questions whether he can lead Intel “with the independence required to protect American interests.”
Intel Yet to Respond
As of Thursday afternoon, Intel had not issued a formal response to Trump’s demand or the letter from Congress. However, sources within the company have indicated that the board is “evaluating the situation seriously.”
Industry insiders say the growing pressure could create a crisis for Intel, which is currently racing to expand its U.S.-based chip manufacturing capacity with the help of billions in government subsidies under the CHIPS and Science Act.
A Broader Political Context
Trump’s remarks are seen by some as part of his broader stance against U.S.-China economic entanglement.
With the 2026 midterms approaching, analysts say Trump may be leveraging the issue to appeal to voters concerned about national security and economic sovereignty.
Meanwhile, political analysts warn that targeting individual executives could create a dangerous precedent for U.S. business leadership and investor confidence.
What This Means for Intel and the Tech Sector
The immediate market impact underscores how fragile investor sentiment can be in politically charged sectors like semiconductors.
If pressure continues to mount, Intel’s board may be forced to make a tough decision—either back its CEO or initiate a leadership transition.
Either way, the controversy is expected to fuel ongoing debates about foreign influence, national security, and the future of U.S. technological leadership.
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