President Donald Trump demanded Intel CEO Lip-Bu Tan to step down immediately because he views Tan as “highly conflicted” regarding his investments in Chinese technology companies. The public request on Thursday resulted in Intel stock prices decreasing by approximately 3% during evening trading.
Tan became Intel CEO in March after investing more than $200 million into Chinese semiconductor and manufacturing firms which included military-linked entities according to corporate records from earlier this year.
The comments from Trump emerged after Senator Tom Cotton wrote a letter about Tan’s Chinese connections and his previous legal battle at Cadence Design where Tan used to work. Trump declared on Truth Social that there exists no other way to resolve this situation.
The CHIPS Act provided Intel with $8 billion in federal subsidies because the company stands as a vital component of Trump’s initiative to restore chip manufacturing operations in the United States. The presidential request for a CEO resignation represents an unusual occurrence that could disrupt standard corporate governance practices according to analysts.
The investors who supported Trump’s intervention saw it as part of the broader effort to bring manufacturing back to the United States but others expressed concerns about establishing a dangerous precedent. The company maintains its dedication to U.S. national security while refusing to address the resignation demand.
The company has not provided any information about Tan’s current status regarding his Chinese business investments.
