Intel CEO Lip-Bu Tan has come under heavy public and political scrutiny following Donald Trump’s call for his immediate resignation over his suspected connections to Chinese military-related organizations. In a contentious posting on his social media account, the ex-American President alleged Tan is “highly conflicted” and only his resignation can salvage U.S. interests.
The controversy was fueled by a question letter presented by Senate Intelligence Committee Chairman Senator Tom Cotton. Cotton expressed national security concerns over the prior business operations and investment by Tan with firms linked to China’s Communist Party and military. The senator was seeking to find out whether Tan properly disclosed or divested the firms prior to becoming Intel’s chief executive.
Intel, however, reaffirmed its dedication to American national security and openness and vowed to respond to all the questions by mid-August. But political fire has already started scaring off investors.
Intel shares dropped following Trump’s public insistence, losing over 4% in early morning trade. A market reaction like this shows growing fears that the chip giant will get caught up in a nastier political and regulatory storm, particularly as a backdrop to elevated U.S.-China technology tensions.
Lip-Bu Tan, the March 2025 incumbent CEO, was first perceived as a solid strategic executive with plenty of experience in the chip business. His previous experience as Cadence Design Systems’ CEO and as he established venture capital firm Walden International granted him industry credibility. Rumors have emerged linking some of his ventures with Chinese companies that subsidize alleged military research — contributing to public distrust.
This drama takes place as Intel fights its way through a watershed moment in the worldwide race for AI chips and increases its U.S.-based operations under the federal CHIPS Act. With billions of dollars in government incentives now hanging in the balance and national security arguments burning hot, Intel is torn between hanging on to dominance and mitigating political blowback.
As the hour counts on the formal reply, all are waiting to see whether Lip-Bu Tan steps down — or whether Intel’s board will back its besieged CEO.
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