Trump Demands Intel CEO Resign Over Alleged China Ties – How Will This Impact the Chip Industry?

US President Donald Trump has called for the immediate resign of Intel CEO, Lip-Bu Tan. Trump accused Tan of having serious conflicts of interest due to alleged connections with Chinese companies.

In a social media post, Trump claimed Tan was “highly conflicted” and could not continue leading the US chipmaker. He suggested the issue stemmed from investments in firms linked to the Chinese military. It is rare for a US president, current or former, to directly demand the removal of a corporate leader.

Tan became Intel’s CEO in March 2025. His job was to help the struggling US semiconductor giant regain its competitive edge. Intel has been a pioneer in the chip industry, but has fallen behind rivals in recent years. The company has also received billions of dollars in government funding to support US chip manufacturing.

Trump Demands Intel CEO Resign Over Alleged China Ties – How Will This Impact the Chip Industry?

In response to Trump’s statement, Intel defended Tan. The company said it was investing heavily in the US in line with America’s economic and national security goals. Intel added that Tan and the board were committed to advancing the country’s semiconductor leadership.

Tan, a naturalised US citizen, was born in Malaysia and raised in Singapore. He is a well-known venture capitalist with decades of experience in the semiconductor sector. Recently, he announced Intel would reduce some of its manufacturing investments, including in the US, to match current market demand.

The company has already laid off thousands of employees this year as part of cost-cutting measures. Following Trump’s comments, Intel’s shares dropped more than 3% in midday trading.

Republican Senator Tom Cotton also questioned Tan’s suitability for the role. In a letter to Intel’s board, Cotton said Tan’s past associations could threaten the company’s ability to handle taxpayer funds responsibly and meet security requirements.

Cotton referred to Tan’s previous leadership at Cadence Design Systems, a firm that paid $140 million in a US case involving violations of export controls to China. While Tan himself was not charged, the incident raised concerns about his connections.

Reports have also highlighted Tan’s investments in hundreds of Chinese companies, some with military links. These were made personally or through his funds between 2012 and late 2024.

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Industry analysts believe Trump’s criticism could also be linked to disputes over Intel’s investment plans or its potential partnership with Taiwan’s TSMC. Expert Patrick Moorhead suggested Trump might be using the controversy to pressure Intel on other business matters.

Trump is known for publicly confronting business leaders, but his direct call for Tan to resign is unusual. The White House stated that Trump’s position is about ensuring that US companies are led by trustworthy individuals who will protect national interests.

The political pressure adds to Intel’s existing challenges. The company is already working to boost chip production in the US, a goal seen as vital for America’s tech independence. Analysts warn that leadership instability could slow progress at a time when the global chip race is intensifying.