Intel CEO engaging with US government after Trump urges resignation
What's the story
Intel's CEO Lip-Bu Tan said the company is cooperating with the US administration to address concerns, according to Reuters. This comes after President Donald Trump urged his resignation, branding him as "highly conflicted" and citing conflicts of interest over his links to Chinese firms amid the chipmaker's ongoing challenges. Trump's move came after Senator Tom Cotton raised national security concerns over Tan's alleged connections with Chinese companies in a letter to Intel's board chair.
Market impact
Trump's statement impacts Intel's stock prices
Trump made the demand on Truth Social, with his post reading, "The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem." The statement had an immediate effect on the market, with Intel shares dropping 5% in premarket trading shortly after. Tan took over as Intel's CEO in March 2025 amid tough times for the company, struggling with falling sales and competition from global players.
Security concerns
Senator Cotton raises national security concerns
Senator Cotton's letter to Intel's board chair raised questions over Tan's previous leadership at Cadence Design Systems and his investments in Chinese tech firms. The senator expressed "concern about the security and integrity of Intel's operations and its potential impact on US national security," according to Reuters. This further fueled Trump's call for Tan's resignation amid rising scrutiny of his ties with China.
Information
No formal investigation into Tan
There is no indication of any formal investigation into Tan or any wrongdoing. However, given Trump's direct involvement and bipartisan concerns over China-related tech risks, Intel's leadership may feel the pressure to address these issues through clarification or disclosure.