Intel CEO Lip-Bu Tan calls out ‘misinformation’ – Business News
Embattled Intel CEO Lip-Bu Tan pushed back on “misinformation” over his alleged financial ties to China after President Trump known as on him to resign over a potential battle of curiosity.
“I want to be absolutely clear: Over 40+ years in the industry, I’ve built relationships around the world and across our diverse ecosystem – and I have always operated within the highest legal and ethical standards,” Tan wrote within the letter to Intel staffers on Thursday.
He went on to say that the company — which final yr was awarded $8.5 billion underneath the Biden administration’s CHIPS Act — is working with the Trump administration to deal with the problems being raised.
Intel CEO Lip-Bu Tan despatched a letter to all staffers on Thursday reacting to “misinformation” within the information. REUTERS
Tan has come underneath fire from each Trump and Sen. Tom Cotton, the chair of the Senate Intelligence Committee, over the Intel chief’s previous investments in Chinese firms with ties to the Beijing and the navy.
In a post on his Truth Social platform Thursday morning, Trump wrote that Tan is “highly CONFLICTED and must resign, immediately.”
That missive got here a day after Cotton (R-Ark.) despatched a letter to Intel Chairman Frank Yeary demanding solutions about Tan’s financial dealings as a result of he’s involved “about the security and integrity of Intel’s operations and its potential impact on US national security.”
A Reuters report earlier this yr claimed Tan invested at the least $200 million throughout a whole lot of Chinese companies – some with hyperlinks to the navy – between March 2012 and December 2024.
Cotton additionally raised issues over Tan’s tenure as CEO at Cadence Design, which final week agreed to pay more than $140 million to settle fees that it bought chips to a Chinese navy establishment, in accordance with Reuters.
In Tan’s memo Thursday, he mentioned that Intel’s board is “fully supportive.”
However, the beleaguered boss has been emroiled a energy wrestle with Intel’s board since taking up as CEO in March, sources aware of the matter advised the Wall Street Journal.
President Trump speaks at an occasion within the White House on Thursday. AP
The crux of the tensions revolves round whether or not Intel ought to proceed to fabricate its own chips or exit the business solely to cut down on prices, in accordance with the report.
While Tan has pushed to keep Intel’s own manufacturing in place, some board members, led by Yeary, try to spin off or sell the money-losing unit, sources mentioned.
Yeary has even held talks with Nvidia and Amazon about shopping for items of the business, and explored a potential sale to chipmaker TSMC, in accordance with the Journal.
Tan, who was born in Malaysia and grew up in Singapore, changed ousted CEO Pat Gelsinger following dismal earnings and several other rounds of layoffs.
