Intel shares declined Thursday after President Donald Trump publicly called for the immediate resignation of CEO Lip-Bu Tan, citing what he described as deep conflicts of interest tied to Chinese entities. The remarks intensified political scrutiny surrounding the semiconductor giant's leadership at a time when U.S. chip policy remains central to national security debates.
"The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem," Trump posted on Truth Social early Thursday. Intel did not immediately respond to a request for comment.
Tan, who took over as CEO in March following Pat Gelsinger's departure, has long been known for cross-border investments through his venture capital firm Walden International and his tenure as CEO of Cadence Design Systems. In 2001, Forbes dubbed him the "pioneer of Asia VC" for his early and extensive investments in China's tech sector.
On Wednesday, Senator Tom Cotton (R., Ark.) sent a letter to Intel's board expressing concern over Tan's reported financial ties to Chinese companies, some allegedly linked to the Chinese Communist Party and the People's Liberation Army. "Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations," Cotton wrote. "Mr. Tan's associations raise questions about Intel's ability to fulfill these obligations."
Cotton specifically cited Intel's $8 billion grant under the CHIPS Act, asking whether Tan had divested holdings in Chinese chipmakers and related ventures.
Reuters previously reported in April that Tan had invested in multiple Chinese companies, including some with military ties, either directly or through associated venture funds.
Intel stock fell about 1% during early trading Thursday, even as broader semiconductor shares were rising amid optimism over potential tariff exemptions teased by President Trump.
