US President Donald Trump is among the headlines for asking Intel CEO Lip-Bu Tan to step down. The American President has been very vocal in his criticism of the Intel CEO in the recent time. However in a post on social media platform Truth Social he has vehemently criticised Mr Tan.
In his post on Truth Social he said “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.” These comments make it a very controversial topic in American Industry. Trump has additionally said Tan’s past links to China, especially during his time at Cadence Design Systems, a company that recently admitted to breaking US export laws by selling chip design tools to a Chinese military university raises concerns.
What is the Problem?
Intel an American chip manufacturer is amidst a controversy due to Lip-Bu Tan. Mr.Tan took over as Intel’s CEO in March 2025 but now, questions are being raised about whether Intel properly examined his background before appointing him.
Political Allegations on Tan:
One of the loudest voices is Republican Senator Tom Cotton, who sent a letter to Intel’s board chairman, Frank Yeary. In the letter, Cotton asked whether Intel had looked into legal troubles connected to Cadence when Tan was in charge there. He also raised concerns about Tan’s investments in Chinese semiconductor companies, some of which are reportedly linked to the Chinese military or Communist Party.
Cotton’s letter also mentioned Intel’s involvement in the
Secure Enclave programme, which is a US government effort aimed at protecting the country’s microchip supply chain for defence use.
Since Intel is getting taxpayer money under this programme, Cotton argued that there needs to be full transparency around Tan’s past ties and investments. He also wanted to know if the board had required Tan to sell off his interests in any Chinese firms before stepping into his current role.
Tan’s Chinese Investment Allegations:
According to a Reuters report, Tan had invested over $200 million in hundreds of Chinese tech and chipmaking firms between 2012 and 2024. Additionally an insider source claimed that Tan later sold many of those investments, but public records in China still list him as being involved with some companies as recently as this year.
Intel’s Response:
Intel responded with a short statement, saying both the company and Tan are committed to protecting US national security. The company said it plans to work with lawmakers and address their questions.
Intel’s Stock Affected:
Amid all this, the issue has already affected Intel’s stock. After Trump’s post went viral, Intel shares dropped more than 3 per cent in premarket trading before the stock market opens in New York. It’s unclear whether the controversy will lead to any immediate changes at the company, but it doesn’t look like it’s going to disappear anytime soon.
