On Thursday, President Trump called on Intel’s CEO Lip-Bu Tan to resign immediately, following reports of his ties with Chinese companies. Trump posted on the “Truth Social” platform stating that there is a serious conflict of interest with Intel’s CEO that requires immediate resignation, emphasizing that there is no other solution to this issue.
The day before Trump’s statement, Republican Senator Tom Cotton from Arkansas wrote to Intel, requesting clarification on Lip-Bu Tan’s relationship with the Chinese Communist Party. Cotton raised concerns that the company could pose a potential risk to U.S. national security.
According to Reuters, Cotton’s letter to Intel’s Chairman Frank Yeary referenced media reports indicating that Lip-Bu Tan had made personal and venture capital investments in hundreds of Chinese companies, some of which are linked to the Chinese military, with a total amount of at least $200 million between 2012 and 2024.
Sources familiar with the matter revealed that Lip-Bu Tan has withdrawn some of his investments in Chinese companies, although the details of the divestment remain unclear. A search in Chinese databases revealed that Tan still holds multiple active investments, with uncertainty surrounding the extent of his divestment.
Cotton also took to social media (formerly Twitter) to suggest that Intel’s newly appointed CEO has deep connections with the Chinese Communist Party. He emphasized that companies receiving government subsidies should be accountable to taxpayers and strictly follow security regulations, calling on Intel’s board to provide explanations to Congress.
The correspondence mentioned that Lip-Bu Tan previously served as CEO of Cadence Design Systems Inc. The company admitted in July to violating U.S. export controls by selling hardware and software to the “National University of Defense Technology” in China, reaching a plea agreement with the Department of Justice.
Intel released a statement on Wednesday, emphasizing their commitment to maintaining U.S. national security and ensuring integrity within the U.S. defense system. The company stated that they will engage in further communication with Senator Cotton regarding the issues raised in the letter.
Intel’s stock price fell by nearly 5% in pre-market trading in New York on Thursday.