Trump demands Intel CEO's resignation over Chinese investments

Thursday 07 August 2025 - 16:20

By: Dakir Madiha

Trump demands Intel CEO's resignation over Chinese investments

U.S. President Donald Trump has called for the immediate resignation of Intel CEO Lip-Bu Tan, labeling him "highly conflicted" due to his extensive ties to Chinese firms. The demand raises questions about Intel's leadership as the company navigates a strategic overhaul amidst mounting challenges.

Allegations of Chinese military links

According to a Reuters investigation in April, Tan personally or through venture funds invested at least $200 million in hundreds of Chinese companies, including advanced manufacturing and chip firms tied to the Chinese military. These investments, reportedly made between 2012 and 2024, involved contractors and suppliers for the People's Liberation Army.

Additionally, Reuters identified 20 investment funds co-owned by Tan's venture capital firm, Walden, and Chinese government entities, with funds originating from key tech hubs like Hangzhou, Hefei, and Wuxi. While Tan has claimed to have divested from these ventures, no detailed evidence has been provided.

Tan’s tenure as CEO of Cadence Design Systems from 2008 to 2021 also drew scrutiny after the company sold products to a Chinese military university involved in nuclear simulation research. Last month, Cadence agreed to pay $140 million to settle U.S. charges related to these sales.

Political and market implications

Trump’s demand follows a letter from Republican Senator Tom Cotton to Intel’s board chair, questioning Tan’s ties to Chinese firms and his leadership’s compatibility with U.S. national security interests. Trump reiterated his stance on his Truth Social platform, asserting, "There is no other solution to this problem."

The controversy has already impacted Intel's stock, which fell by 2% in early U.S. trading. Analysts remain divided over Trump's intervention. Some view it as an overreach, while others see it as indicative of his commitment to reshoring American industry.

Intel’s struggles under scrutiny

Intel, once a dominant force in chip manufacturing, has faced a steep decline in recent years. Its market value has fallen below $100 billion, with shares losing over 60% in 2024. The company has also lagged behind rivals like Taiwan’s TSMC in manufacturing and Nvidia in artificial intelligence chips.

To address these challenges, Tan has proposed slashing Intel’s workforce by 22%, reducing it to 75,000 employees by the end of 2025. Despite securing $8 billion in subsidies under the 2022 CHIPS and Science Act, Intel is under pressure to attract major customers to sustain its manufacturing operations.

While some analysts argue that Tan’s experience in Chinese semiconductors makes him an asset, his controversial past has cast a shadow over his leadership. Intel has declined to comment on the matter but reaffirmed its commitment to U.S. national security and its role in the defense ecosystem.