Intel CEO responds after President Trump calls for his immediate resignation

In a dramatic escalation of political pressure on the tech sector, President Trump has publicly called for the resignation of Intel CEO Lip-Bu Tan, a demand that comes just months after Tan took the helm of the embattled chipmaking giant.

The President's directive, posted on his Truth Social platform, accuses Tan of being "highly conflicted" and a national security risk due to his alleged extensive financial ties to Chinese companies.

The demand for Tan's resignation follows a letter from Republican Senator Tom Cotton to Intel's board, in which the senator raised concerns about Tan's past investments and leadership roles. Cotton cited a Reuters report that claimed Tan, through a venture capital firm, had invested in hundreds of Chinese companies, including some with reported links to the Chinese military.

The senator also pointed to a recent criminal case involving Cadence Design, a company where Tan was CEO until 2021. The company pleaded guilty to illegally exporting technology to a Chinese military university.

Tan, who was appointed CEO in March of this year, has swiftly pushed back against the claims. In a memo to all Intel employees, he defended his four-decade career, stating that "there has been a lot of misinformation circulating about my past roles" and that he has "always operated within the highest legal and ethical standards."

He also affirmed his commitment to U.S. national and economic security, adding that Intel is "engaging with the Administration to address the matters that have been raised and ensure they have the facts."

The public dispute sent Intel's stock down by several percentage points and highlights the growing tension between the U.S. and China over a global race for semiconductor supremacy. As a major recipient of federal subsidies under the CHIPS Act, Intel's leadership and strategic direction are under intense scrutiny.

Analysts and industry insiders are divided on the impact of Trump's intervention. While some see it as a strong signal of the administration's "America First" agenda, others worry it could destabilize a key American company and distract it from its critical turnaround efforts.

The company's board has reportedly expressed its support for Tan, but the pressure from the White House and Capitol Hill is unprecedented and adds a new layer of uncertainty to Intel's already challenging path forward.