Trump calls for Intel CEO's ouster amid national security concerns over China ties

Donald Trump demanded Intel CEO Lip-Bu Tan resign over alleged ties to Chinese firms. Amid national security concerns, Tan's leadership faces scrutiny as Intel undergoes restructuring and relies on U.S. federal funding.

By  Storyboard18| Aug 7, 2025 6:53 PM
The controversy was reignited following a Reuters report revealing that Republican Senator Tom Cotton had sent a letter to Intel's board questioning Tan’s past investments in Chinese tech companies—some allegedly linked to China’s military—and ties to Cadence Design Systems, a company facing a criminal case.

Former U.S. President Donald Trump has called for the immediate resignation of Intel CEO Lip-Bu Tan, citing what he described as “highly conflicted” ties to Chinese firms, sparking renewed scrutiny of national security risks in the U.S. semiconductor industry, Reuters reported.

Trump’s demand, made via Truth Social on Thursday, comes just as Intel undergoes a high-stakes transformation under Tan, who assumed the top job in March after the abrupt exit of Pat Gelsinger. The company is in the middle of a major restructuring plan to cut costs, slash 22% of its workforce, and pause some manufacturing projects, moves seen as crucial to regaining its edge in the global chip race.

The controversy was reignited following a Reuters report revealing that Republican Senator Tom Cotton had sent a letter to Intel's board questioning Tan’s past investments in Chinese tech companies, some allegedly linked to China’s military and ties to Cadence Design Systems, a company facing a criminal case.

Between 2012 and 2024, Tan and his affiliated venture funds reportedly poured over $200 million into hundreds of Chinese chip and advanced manufacturing firms.

“There is no other solution to this problem,” Trump wrote, sharply criticizing Tan and casting doubt on Intel’s ability to uphold U.S. national security interests under his leadership. The statement rattled investor confidence, sending Intel shares down nearly 4% in premarket trading.

Intel, a recipient of nearly $20 billion in federal grants under the CHIPS and Science Act, plays a pivotal role in America’s plan to rebuild domestic chipmaking capabilities. Losing public and political trust at this juncture could put both funding and strategic momentum at risk.

In response to mounting concerns, Intel issued a statement reaffirming Tan’s and the company’s commitment to U.S. national security and its role in the defense ecosystem. The company also pledged to respond directly to the Senator’s inquiries.

First Published onAug 7, 2025 7:03 PM

Trump calls for Intel CEO's ouster amid national security concerns over China ties

Donald Trump demanded Intel CEO Lip-Bu Tan resign over alleged ties to Chinese firms. Amid national security concerns, Tan's leadership faces scrutiny as Intel undergoes restructuring and relies on U.S. federal funding.