Intel CEO Responds to Trump's Resignation Demand Over China Ties

Intel CEO Lip-Bu Tan has responded to allegations regarding his financial connections to China after President Donald Trump called for his immediate resignation. In a letter to Intel staff on Thursday, Tan addressed what he termed as "misinformation" about his alleged ties to Chinese companies, emphasizing that he has always operated within legal and ethical standards throughout his 40-year career in the industry. The CEO stated that Intel is currently working with the Trump administration to address the concerns being raised.

The controversy stems from reports that Tan invested approximately $200 million across hundreds of Chinese firms between 2012 and 2024, with some allegedly having connections to the Chinese military. Senator Tom Cotton, who chairs the Senate Intelligence Committee, has also expressed concerns, sending a letter to Intel Chairman Frank Yeary requesting information about Tan's financial dealings and their potential impact on national security. Additionally, questions have been raised about Tan's previous role at Cadence Design, which recently agreed to pay over $140 million to settle charges related to selling chips to a Chinese military institution.

The situation is particularly sensitive as Intel received $8.5 billion in funding under the previous Biden administration's CHIPS Act. In his communication to staff, Tan indicated that Intel's board remains supportive of his leadership despite the current controversy. However, reports suggest that Tan has been involved in a power struggle with the board since becoming CEO in March, primarily concerning whether Intel should continue manufacturing its own chips or exit that aspect of the business to reduce costs.

According to sources cited by the Wall Street Journal, while Tan advocates for maintaining Intel's manufacturing capabilities, some board members led by Chairman Yeary have explored options to spin off or sell the division. These explorations reportedly included discussions with companies such as Nvidia and Amazon about purchasing portions of the business, as well as considering a potential sale to chipmaker TSMC. Tan, who was born in Malaysia and raised in Singapore, assumed the CEO position following the departure of Pat Gelsinger amid financial challenges and workforce reductions at the company.