Trump Calls for Resignation of Intel CEO Over China Ties

Per Reuters, Trump issued the demand on his Truth Social platform, labeling Tan “highly conflicted” over his financial ties to Chinese companies—some with links to China’s military. The post caused Intel shares to dip nearly 3% in late morning trading, adding pressure to a company already grappling with declining market share and strategic uncertainty.

Tan, who assumed leadership at Intel in March, was previously revealed by Reuters to have invested at least $200 million in Chinese chip and manufacturing companies through his venture capital firm, Walden International. Some of those firms, according to Reuters, were connected to the People’s Liberation Army, raising alarm among U.S. lawmakers and now the former president.

The backlash intensified following a report by Reuters that Republican Senator Tom Cotton had sent a letter to Intel’s board chair this week, raising questions about Tan’s prior business dealings and a recent criminal case involving Cadence Design, where Tan served as CEO until 2021. The company recently agreed to pay over $140 million in a settlement related to unauthorized sales to a Chinese military-affiliated university.

Intel and Tan have not publicly responded to the president’s remarks. However, following Reuters’ reporting on the senator’s letter, an Intel spokesperson defended both the company and Tan, emphasizing their commitment to U.S. national security and their role in the defense technology ecosystem.

Tan’s previous investments, per Reuters, included co-ownership of about 20 Chinese entities alongside local government funds from major tech hubs such as Hangzhou, Hefei, and Wuxi. While a source had claimed Tan had exited those positions, Reuters was unable to verify the extent of those divestments at the time, as many investments remained listed in Chinese databases.

Trump’s remarks reflect a broader concern within the GOP over foreign influence in strategic industries. “President Trump remains fully committed to safeguarding our country’s national and economic security,” a White House official told Reuters, reiterating that leadership at key tech companies should be “trustworthy.”

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Industry analysts are split on the implications. While some argue that Trump’s move risks politicizing corporate governance, others say it reflects growing scrutiny of business ties to China amid ongoing geopolitical tensions. “You don’t want American presidents dictating who runs companies, but certainly his opinion has merit and weight,” Phil Blancato, CEO of Ladenburg Thalmann Asset Management, told Reuters.

Meanwhile, Intel remains mired in a broader struggle to regain its footing. The once-dominant chipmaker has lost manufacturing ground to Taiwan’s TSMC and now trails Nvidia in the booming AI chip sector. Once-valued for its profit margins and technological leadership, Intel’s market cap has plunged below $100 billion, a stark contrast to Nvidia’s historic rise to a $4 trillion valuation.

Tan’s leadership marked a sharp pivot from his predecessor, Pat Gelsinger, who was dismissed late last year following a Reuters exposé revealing Intel’s failure to meet internal performance goals under his tenure. In contrast, Tan has trimmed Intel’s global ambitions, downsized its workforce, and paused manufacturing projects—including a delayed Ohio facility now pushed back to as late as 2031.

Ohio Senator Bernie Moreno criticized Intel on social media, stating it was “pretty obvious” the company had failed to meet its obligations to the state and called for a fraud investigation into its conduct.

Despite the political pressure, some investors see Trump’s comments as part of a broader push to boost domestic manufacturing. “It’s just another signal that he’s very serious about trying to bring business back to the U.S.,” David Wagner of Aptus Capital Advisors told Reuters.

Source: Reuters