Intel shares plunge after Trump demands CEO resigns

Trump Criticizes Lip‑Bu Tan on Truth Social

Key Points from the Post

• Accusation: President Trump called Lip‑Bu Tan “highly conflicted.”
• Rhetorical Basis: The tweet suggests possible associations with the Chinese Communist Party.
• Response: Trump’s statement was brief and did not include further clarifications.

Implications

The short comment from the former president has sparked speculation about Tan’s public standing and possible policy influence, especially in contexts where national security and foreign ties are paramount.

Intel Shares Plunge Amid Political Pressure

Trump Urges Immediate Resignation of Intel CEO

In a post on Truth Social, President Donald Trump demanded that Intel’s chief executive resign at once, labeling the CEO as “highly conflicted.” The message read: “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!” This outspoken stance has sparked a sharp decline in Intel’s stock value.

Senate Letter Highlights Potential Conflicts

Earlier in the week, Senator Tom Cotton sent a formal communication to Intel’s chairman, Frank Yeary, expressing concerns about the current CEO’s business ties.

• Questions whether CEO Lip‑Bu Tan has divested interests in semiconductor companies that may have links to the Chinese Communist Party and the People’s Liberation Army.
• Requests confirmation that the board has eliminated any conflicting interests.
• Asks for transparency regarding the CEO’s investments and relationships with foreign entities.

Intel’s Position on National Security and Economic Interests

In an official statement, Intel reaffirmed its commitment to U.S. national and economic security. The company highlighted its ongoing investments, which are aligned with the administration’s America First agenda. Intel maintains that it remains dedicated to safeguarding the nation’s critical technology infrastructure.

Cotton’s allegations

Intel Names Lip-Bu Tan as Chief Executive Officer

History & Controversy

Background on Lip-Bu Tan

• In March 2025, Intel announced the appointment of Lip‑Bu Tan as its new CEO.
• Tan is reputed to hold leadership roles in several Chinese enterprises and has equity in numerous advanced‑manufacturing and semiconductor firms across China.
• Multiple companies under his control are believed to maintain connections with the People’s Liberation Army.

Connection to Cadence Design Systems

• During Tan’s tenure at Cadence, the company faced regulatory scrutiny for export violations.
• In July 2024, Cadence pleaded guilty to allegations of selling hardware and software to China’s National University of Defense Technology, an institution linked to China’s military.
• Cadence’s governance during the period 2015‑2021, when the infractions occurred, coincided with Tan’s leadership.

Regulatory Consequences

• The U.S. Department of Commerce fined Cadence $95 million for the breach of export controls.
• Investigations revealed that Cadence’s Chinese subsidiary knowingly transferred U.S. technology to entities developing supercomputers that support China’s military modernization and nuclear weapons development.
• Cadence has yet to issue a public response to inquiries from journalists.

These developments heighten scrutiny on Intel’s leadership trajectory and potential cross‑border technology transfer risks.

The digital race

Tan’s Global Semiconductor Investments Trigger US Security Concerns

From Walden International to China’s Chip Ambitions

In 1987, Marcus Tan founded Walden International with the goal of backing tech pioneers, notably in the semiconductor arena. His portfolio has grown to include major players such as the Taiwan Semiconductor Manufacturing Company (TSMC) and China’s state‑owned SMIC, both central to the nation’s drive to strengthen its chip‑making prowess.

US‑China Tech Rivalry Intensifies

The emerging economic and political showdown between the United States and China is increasingly shaped by competition over high‑tech fields—most prominently chips and artificial intelligence. Analysts warn that breakthroughs in these sectors will dictate future economic power and military advantage.

Senator Cotton’s Call for Security Measures

• As Chair of the Senate Intelligence Committee, Ron Cotton has voiced alarm that Chinese operatives might be embedded within American tech firms and defense contractors.
• He believes these individuals could covertly siphon proprietary data or embed malicious backdoors, granting China direct entry into classified networks and systems.

Demand for Executive Action

On Thursday, the former Arkansas representative penned a letter to the Department of Defense, urging Secretary Pete Hegseth to prohibit all non‑U.S. citizens from holding positions that grant access to DoD networks. The letter also calls for an investigation into Chinese nationals employed by defense firms.

“The United States acknowledges that China’s cyber capabilities pose one of the most aggressive and perilous threats to our national security, as evidenced by infiltration of pivotal infrastructure, telecom networks, and supply chains,” Cotton wrote, urging the Pentagon to initiate the inquiry.

Linking State‑Sponsored Hacking to National Security

• National security officials have repeatedly tied Chinese governmental actors to sophisticated cyber campaigns targeting high‑profile Americans and essential U.S. systems.
• Cotton emphasized that companies receiving federal grants must act as responsible custodians of taxpayer funds and uphold stringent security safeguards.

Playing catch-up

Intel’s Struggles Amid New AI Surge, Despite U.S. Boost

Federal Support Under the CHIPS Act

Under the Biden administration’s CHIPS Act, Intel secured more than $8 billion (€6.9 bn) to expand its semiconductor facilities nationwide. Yet the company’s stock fell by 3.5 %, even as the market—particularly the tech‑heavy Nasdaq—advanced.

Historical Roots and Missed Transitions

• Founded in 1968 at the dawn of the personal computer era.
• Failed to capitalize on the shift toward mobile computing sparked by Apple’s 2007 iPhone release.
• Lagged behind more agile competitors that embraced the mobile revolution.

The AI Wave and Competitive Pressures

The explosive growth of artificial intelligence has amplified Intel’s challenges. AI demands high‑performance chips—a niche where Nvidia has become the industry’s dominant player, eclipsing Intel’s traditional market share.

Turnaround Efforts Under CEO Tan

CEO Pat Gelsinger Tan is steering a comprehensive recovery plan that includes:

• Reducing workforce by thousands of employees.
• Cutting overall expenses.
• Scaling back some domestic semiconductor manufacturing operations.
• Revisiting strategic shifts toward higher‑margin, advanced‑chip technologies.

Looking Forward

Intel’s future hinges on its ability to pivot in a rapidly evolving tech landscape, balancing the benefits of federal investment with the necessity to win back relevance in the AI and mobile sectors.