Shares of Intel Corporation dropped sharply on Thursday following a public call by former U.S. President Donald Trump for the immediate resignation of CEO Lip-Bu Tan. In a post on the social media platform Truth Social, Trump described Tan as “highly conflicted,” citing his alleged business ties to Chinese technology and military-linked entities. “There is no other solution to this problem,” Trump wrote, intensifying political scrutiny over Intel’s leadership.
Tan was appointed CEO of Intel in March 2025, succeeding Pat Gelsinger, under whose tenure the company lost significant ground to competitors in the AI and semiconductor markets. Tan had previously served as CEO of Cadence Design Systems, a California-based chip design firm, until 2021. Following his appointment, Intel shares had initially risen, reflecting investor optimism over a possible turnaround.
However, Thursday’s remarks from Trump triggered a decline of over 3%, with shares trading below $20, underperforming broader markets. The controversy escalated after U.S. Senator Tom Cotton, Republican of Arkansas, sent a formal letter to Intel board chairman Frank Yeary, raising concerns over Tan’s investments in Chinese firms.
Trump escalates scrutiny over Intel’s leadership
Cotton cited an April report from the media stating that Tan, through his venture capital firm Walden International, had invested in hundreds of Chinese tech companies, including at least eight with connections to the People’s Liberation Army. The senator questioned whether Intel had vetted these associations and required Tan to divest from any entities tied to the Chinese Communist Party or other foreign military interests.
Cotton’s letter also queried whether Tan or his former firm had been subject to any subpoenas and whether such matters were disclosed to the board. He warned that Intel, recipient of nearly $8 billion under the Biden administration’s CHIPS Act, is obligated to uphold strict national security standards and maintain transparency about any foreign entanglements.
The CHIPS Act funding had been reduced from earlier expectations due to concerns over Intel’s operational reliability and its capacity to meet defense-related manufacturing objectives. Intel has not issued a public response to either Trump’s statement or Cotton’s letter. The developments come amid broader tensions surrounding U.S. semiconductor policy, as Trump this week pledged to impose a 100% tariff on imported chips not manufactured in the United States.
Political backlash risks destabilizing Intel’s recovery plan
Major chipmakers including TSMC, Samsung, and Nvidia have recently announced expanded investments in U.S.-based operations to preempt the impact of such potential trade barriers. Internally, Tan has already initiated deep structural changes within Intel, including cost-cutting in the company’s foundry business, which posted an operating loss of over $3 billion. Intel has canceled projects in Germany and Poland, consolidated facilities in Asia, and slowed construction of its Ohio fabrication site.
These moves reflect an aggressive effort to reduce expenditures while reshaping Intel’s business model. Intel’s market value, now under $90 billion, continues to trail far behind key competitors. While Tan’s appointment was initially seen as a strategic pivot, the mounting political pressure could pose new challenges for both his leadership and the company’s strategic recovery. – By Content Syndication Services.