Trump Demands Intel CEO Resignation Over China Ties: Stock Slides
Trump Demands Intel CEO Resignation Over China Ties: Stock Slides
In a dramatic move, President Donald Trump has called for the resignation of Intel Corporation’s CEO, Lip-Bu Tan, citing alleged ties to Chinese firms. The statement, posted on Truth Social on August 7, 2025, triggered a sharp 4-5% drop in Intel’s stock during premarket trading. This controversy underscores tensions in the U.S. semiconductor industry, with implications for national security and the CHIPS Act.
Trump’s Call Shakes Intel’s Leadership
Trump’s Truth Social post was blunt: “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution!” The demand follows reports of Tan’s investments in Chinese companies, some allegedly linked to the Chinese military. These ties raise concerns as Intel plays a key role in U.S. efforts to boost domestic chip manufacturing under the CHIPS Act.
The timing intensifies scrutiny, with Arkansas Senator Tom Cotton recently questioning Tan’s leadership in a letter to Intel’s board. This has sparked debates over corporate accountability and the security of America’s tech supply chain.
Who Is Lip-Bu Tan?
Lip-Bu Tan, a semiconductor industry veteran, became Intel’s CEO in March 2025. Previously, he led Cadence Design Systems, earning praise as a strategic innovator. However, his reported investments in Chinese tech firms have drawn criticism, especially given Intel’s reliance on CHIPS Act funding to expand U.S. chip production.
Intel faces fierce competition from NVIDIA and AMD, alongside concerns about its leadership in cutting-edge chip manufacturing. Trump’s demand adds pressure to a company already grappling with layoffs and financial challenges.
National Security and the CHIPS Act
Tan’s alleged investments in Chinese firms raise red flags amid U.S. efforts to reduce reliance on foreign semiconductors. The CHIPS Act, enacted in 2022, provides billions in subsidies to companies like Intel to strengthen domestic production. Any perceived conflict of interest could undermine these efforts and erode public trust.
Senator Cotton’s letter stressed that “U.S. companies receiving taxpayer dollars must uphold strict security standards.” Trump’s intervention escalates the issue, framing it as a test of leadership in the tech sector.
Market Impact and Industry Fallout
Intel’s stock slide reflects investor concerns over the uncertainty sparked by Trump’s comments. While other chip stocks rallied, Intel’s decline highlights its exposure to political and geopolitical risks. The controversy also fuels discussions about trade tensions, including tariffs affecting the tech industry.
Read more about the U.S. semiconductor industry challenges in our related posts.
What’s Next for Intel?
Intel has not yet responded to Trump’s demand, leaving the industry on edge. Tan’s leadership is critical as Intel aims to compete in AI-driven markets and meet CHIPS Act goals. Whether the board defends Tan or considers a leadership change, the outcome will shape Intel’s future and the U.S. tech landscape.