Intel CEO reacts to Trump's threat

Intel CEO Lip-Bu Tan counters Trump's call for his resignation amid misinformation claims.

: Lip-Bu Tan, Intel's CEO, has refuted claims by President Donald Trump demanding his resignation due to alleged conflicts of interest. Trump raised concerns over Tan's investments in Chinese chip companies and his past role at Cadence Design Systems, which previously admitted to violating U.S. export controls. Tan, in a memo to staff, emphasized maintaining high legal and ethical standards throughout his career. He assured that Intel is actively addressing the issues with the Trump Administration to clarify the situation.

After President Donald Trump publicly demanded that Intel’s chief executive resign over alleged conflicts tied to past investments in Chinese tech, Intel CEO Lip‑Bu Tan pushed back, calling the claims “misinformation” and stressing that he has always operated within the law and to high ethical standards. Trump’s call came via Truth Social amid intensified scrutiny from Senator Tom Cotton, who questioned Tan’s historic links to firms in China, including entities critics say have military connections. The controversy landed as Intel remains central to U.S. ambitions to rebuild domestic chip capacity.

In an internal letter shared with staff and later reported by multiple outlets, Tan rejected the characterization of his track record and said he has spent more than four decades building companies in the United States while adhering to compliance requirements. He framed the allegations as selective and misleading, arguing that they distort a complicated investing history typical of long‑tenured semiconductor executives. Tan also emphasized his commitment to transparency and to correcting the record.

Tan said Intel’s board “fully supports” his leadership, an assertion echoed in financial press coverage citing people familiar with the board’s position. He added that Intel is engaging with the Trump administration to ensure decision‑makers have accurate information, signaling a willingness to brief officials on his prior investments and any divestitures. The company’s message aimed to steady employees and customers as headlines swirled.

Markets initially wobbled following Trump’s statement, with Intel shares sliding before paring some losses as reassurances about board backing circulated. Investors remain focused on execution: Intel is in the middle of a difficult turnaround, balancing cost cuts with multi‑billion‑dollar foundry bets and federally supported projects. The stakes are high given Intel’s role in CHIPS Act goals and supply‑chain resilience, and leadership instability would risk complicating grant milestones and customer confidence.

Politically, the clash underscores a harder line on perceived China ties for U.S. tech leadership, with the presidency exerting unusual pressure on a specific CEO. While Trump’s demand grabbed headlines, Tan’s response—denial of wrongdoing, board support, and outreach to the administration—signals Intel’s intent to contain the issue and keep its strategy on track. Whether this quiets skepticism will depend on forthcoming disclosures and Intel’s operational progress over the next few quarters.

Sources: Reuters, Financial Times, Investopedia, AP News, Bloomberg

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