Why Does Trump Want the Intel CEO to Resign? Lip-Bu Tan's Investments in Chinese Firms Raise Alarm

President Donald Trump has ignited a political and corporate firestorm by calling for the immediate resignation of Intel's newly appointed CEO, Lip-Bu Tan, over concerns about his past business dealings in China —some reportedly tied to the Chinese military.

Trump's Post Sends Shockwaves Through Silicon Valley

In a social media post on Thursday morning, Donald Trump demanded the resignation of Intel's CEO, Lip-Bu Tan.

Writing on Truth Social, the former president stated, '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!'

Following President Trump's demand for the CEO's resignation, Intel shares declined on Thursday, according to a report by Barrons. The chipmaker's stock fell by 2.7% to $19.86 (£14.79) in premarket trading after the post, signalling investor unease over the unfolding controversy.

The Man Under Fire: Who Is Lip-Bu Tan?

Tan, who officially took over as CEO in March 2025, was brought in to spearhead Intel's revival after a difficult stretch marked by declining sales and sluggish innovation under his predecessor, Pat Gelsinger. However, his appointment has come under renewed scrutiny following new concerns over his ties to Chinese tech firms.

In a formal letter earlier this week, Republican Senator Tom Cotton of Arkansas raised alarm about Tan's alleged connections to Chinese companies and government-linked organisations.

The letter referenced a recent criminal case involving his former employer, Cadence Design, where Tan served as CEO until 2021.

Cotton expressed concern over the security of Intel's operations and its potential impact on US national security.

According to a report by The Times of India, the letter specifically questioned the board about its awareness of subpoenas sent to Cadence Design (Tan's previous company) during his tenure and whether Tan was required to sell off his investments in Chinese companies before becoming CEO of Intel.

'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 fulfil these obligations. In the interest of transparency and national security, I respectfully request a response to the following questions by August 15, 2025.'

In his letter, Cotton also inquired whether Intel had mandated that Tan sell his shares in Chinese chip manufacturers tied to the Chinese Communist Party, the People's Liberation Army, and other problematic organisations in China.

The Investment Trail: Chinese Firms With Military Links

A Reuters report from April revealed that Tan had invested in a variety of Chinese companies, with some of these firms being linked to the nation's military, either directly or through venture funds.

Though Intel surpassed its revenue forecasts in the second quarter, the company announced several significant cost-cutting measures. These include slashing its workforce, reducing management layers, and cutting capital spending.

To reduce costs, Intel scrapped its plans for new manufacturing facilities in Germany and Poland. The company also combined its testing and assembly operations in Vietnam and Malaysia, while CEO Tan announced a delay in the construction of a chip factory in Ohio.

Intel in Transition: Cuts, Delays and Restructuring

Tan took the helm as Intel continued a major internal overhaul. Despite beating revenue expectations in the second quarter, the company has implemented deep cost-cutting measures. These include reducing headcount, flattening management layers, and scaling back on capital expenditures.

Plans to build manufacturing facilities in Germany and Poland have been put on hold, and operations in Vietnam and Malaysia are being consolidated. Additionally, the much-anticipated Ohio chip factory project has been delayed, as confirmed by Tan himself.

A Future Hanging in the Balance

Intel's turnaround strategy now risks being overshadowed by political pressure and shareholder anxiety. With President Trump's direct call for resignation and Senator Cotton's August 15 deadline for answers, the company finds itself caught between a technological transformation and a geopolitical reckoning.

How Intel responds to these questions—particularly around Tan's investments and potential conflicts—will not only shape its future but also determine its standing as a secure and trusted pillar of the American semiconductor industry.

How Intel's board and new CEO will respond to this pressure remains to be seen, but their decisions will undoubtedly shape the company's future.