Trump demands Intel’s Lip-Bu Tan resign amid – Business News
President Trump known as on new Intel CEO Lip-Bu Tan to instantly resign amid allegations of having financial ties to the Chinese navy — sending shares of the struggling US chipmaker decrease Thursday.
“The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem,” Trump wrote in a post on his Truth Social platform Thursday morning.
Intel didn’t instantly reply to The Post’s request for remark.
Lip-Bu Tan took over as Intel’s chief govt officer earlier this 12 months. REUTERS
Intel shares dropped practically 2% after the opening bell.
Tan, who was born in Malaysia and grew up in Singapore, took the helm at Intel in March after the software program giant ousted Pat Gelsinger following dismal earnings and a number of other rounds of layoffs.
Last 12 months, the company was awarded $8.5 billion from the Biden administration’s CHIPS Act underneath the Secure Enclave program, a national security initiative to make secure microchips for protection and intelligence purposes.
The funding was later slashed by more than $600 million to about $7.85 billion however Intel nonetheless ranks as one of the highest corporations receiving essentially the most federal funding.
Trump’s call for Tan to step apart comes on the heels of a letter despatched to Intel’s board on Wednesday by Sen. Tom Cotton (R-Ark.) searching for info on Tan’s investments in companies tied to the Chinese navy and a legal case involving his former employer, Cadence Design.
Cotton, the chair of the Senate Intelligence Committee, wrote he’s involved “about the security and integrity of Intel’s operations and its potential impact on US national security,” within the missive to Intel Chairman Frank Leary, in line with a copy obtained by The Post.
A Reuters report earlier this 12 months claimed Tan invested not less than $200 million throughout a whole bunch of Chinese companies – some with hyperlinks to the navy and the Chinese Communist Party – between March 2012 and December 2024.
President Trump known as on Intel CEO Lip-Bu Tan to resign. REUTERS
“Intel and Mr. Tan are deeply committed to the national security of the United States and the integrity of our role in the US defense ecosystem,” an Intel spokesperson informed The Post on Wednesday.
Cotton argued that Intel – as a main recipient of authorities grants – is “required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations.”
“Mr. Tan’s associations raise questions about Intel’s ability to fulfill these obligations,” he added.
Tan’s former employer Cadence Design final week agreed to pay more than $140 million to settle prices that it bought its chips to a Chinese navy establishment, in line with a Reuters report.
Those gross sales occurred during Tan’s tenure as CEO from 2008 to 2021.
