For the first time in Intel’s 56-year history, a sitting U.S. President has publicly demanded the resignation of its CEO.
In a startling post on Truth Social, President Trump urged Intel CEO Lip-Bu Tan to resign immediately, declaring there was “no other solution.” He accused Tan of having “serious conflicts of interest” tied to his past business dealings.
A U.S. President directly intervening in the leadership of one of America’s most iconic technology companies is almost unprecedented. The dispute stems from Tan’s historical business ties with Chinese technology firms and concerns over Intel’s role in U.S. defense-related supply chains.
Senator Tom Cotton recently sent a letter to Intel Chairman Frank Yeary, questioning whether the board had thoroughly examined Tan’s investments in Chinese companies and whether he had fully divested before becoming CEO. Intel is a key player in the federal Secure Enclave program, designed to safeguard U.S. defense microelectronics, and holds a $3 billion contract with the Department of Defense. Cotton’s inquiry raised the possibility that Tan’s past investments could compromise these commitments.
Reports suggest that through his venture capital firm Walden International, Tan invested at least $200 million in over 600 Chinese companies. Although Tan insists he has divested, doubts remain.
Following the President’s remarks, Intel’s stock fell 3.14%, closing at $19.77 with a market capitalization of $86.53 billion.
Who is Lip-Bu Tan? #
Lip-Bu Tan is the first Chinese-American CEO in Intel’s history. Appointed on March 12, 2025, and officially taking the role on March 18, he succeeded interim co-CEOs David Zinsner and Michelle (MJ) Johnston Holthaus, while also rejoining Intel’s board.
Born in Malaysia in 1959 and raised in Singapore, Tan holds a physics degree from Nanyang Technological University, a master’s in nuclear engineering from MIT, and an MBA from the University of San Francisco. Initially a semiconductor investor, he transitioned into executive leadership.
From 2009 to 2021, as CEO of Cadence Design Systems, Tan doubled revenue, boosted profit margins, and increased the stock price by more than 3,200%. His “customer-first” approach and extensive industry network earned him a reputation as one of the most connected figures in tech. As founder of Walden International, he backed startups in semiconductors, clean energy, and other sectors.
Intel’s Response #
Intel issued a statement affirming its commitment to U.S. national and economic security, highlighting billions of dollars in domestic R&D and manufacturing investments — including a new Arizona fab with the nation’s most advanced process technology.
“Intel, the Board of Directors, and Lip-Bu Tan are deeply committed to advancing U.S. national and economic security interests… We are the only company investing in leading logic process node development in the U.S., and we look forward to continued engagement with the Administration.”
The company stressed that Chinese customers would not be affected and confirmed that Tan remains CEO. Intel also pledged to work closely with the Trump administration.
Tan’s Message to Employees #
Shortly afterward, Tan sent an open letter to Intel staff, emphasizing his decades-long commitment to the U.S. and addressing concerns over his past roles:
“America has been my home for more than 40 years. I love this country and this company. Leading Intel at this pivotal time is a privilege… I have always followed the highest legal and ethical standards. My reputation is built on trust — doing what I say and doing it the right way.”
Tan reiterated Intel’s transformation goals, praised upcoming milestones — including high-volume U.S. production on advanced semiconductor nodes later this year — and called on employees to stay focused on the company’s mission.
Bottom line: This unprecedented clash between the White House and Intel’s leadership could have far-reaching implications, not just for the company’s future, but for the U.S. semiconductor industry as a whole.