US President Donald Trump has sparked controversy by publicly demanding the resignation of Intel’s CEO, Lip-Bu Tan, over concerns related to his historical ties to China. Trump made the call via a post on Truth Social, claiming Tan is "highly conflicted" and asserting that stepping down is the only viable solution. This public outcry follows increasing scrutiny from Washington over Tan’s prior leadership at Cadence Design Systems—a company that has admitted to violating US export laws by selling sensitive chip design tools to a Chinese military-linked university.
Lip-Bu Tan, who became Intel’s CEO in March 2025, is now facing growing pressure from political figures questioning the vetting process that led to his appointment. Republican Senator Tom Cotton has emerged as a leading critic, writing directly to Intel’s board chairman Frank Yeary. In his letter, Cotton questioned whether Intel had sufficiently investigated Tan’s history, especially regarding Cadence’s legal issues and Tan’s financial ties to Chinese semiconductor firms. Some of these firms, Cotton noted, may have links to China’s military or the Communist Party, raising concerns about potential national security risks.
The scrutiny deepens due to Intel's involvement in the Secure Enclave programme—a government initiative meant to safeguard America’s defence chip supply chain. Since Intel receives federal funding under this programme, Cotton insisted on complete transparency regarding Tan’s financial and professional history. He also questioned whether Intel’s board had required Tan to divest from Chinese technology companies before assuming the CEO role.
A Reuters investigation added fuel to the controversy by revealing that between 2012 and 2024, Tan had invested over $200 million into hundreds of Chinese tech and semiconductor ventures. While insiders claim that Tan has since sold many of these investments, public records indicate he may still hold active ties with some of the firms as recently as this year, raising further doubts.
Intel issued a brief response, affirming both the company’s and Tan’s commitment to upholding US national security standards. The company also stated that it intends to engage with lawmakers and provide clear answers to their inquiries. However, the situation has already impacted Intel’s market performance. Following Trump’s remarks, Intel’s stock dropped by more than 3% in premarket trading, signaling investor concern over the developing situation.
While it remains uncertain whether the controversy will lead to Tan’s resignation or other immediate corporate shifts, the issue is far from settled. With political pressure mounting and financial markets reacting, Intel is now at the center of a broader national debate over foreign ties, executive vetting, and the future of US tech leadership.
