Trump changes tune on Intel CEO after demanding – Business News
President Trump mentioned he met with Intel CEO Lip-Bu Tan on Monday, days after in search of his resignation, praising Tan and calling the assembly “a very interesting one.”
Shares of the chipmaker rose 3% in prolonged trading.
Last week, Trump had demanded the rapid resignation of Tan, calling him “highly conflicted” over his ties to Chinese companies, injecting uncertainty into the chipmaker’s years-long turnaround effort.
President Trump final week demanded Intel CEO Lip-Bu Tan’s rapid resignation over ties to Chinese companies, injecting uncertainty into the chipmaker’s years-long turnaround effort. AP
Trump mentioned he met with Tan, together with Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent. His cupboard members and Tan have been going to convey ideas to him subsequent week, Trump mentioned in a post on Truth Social.
“His success and rise is an amazing story,” Trump mentioned about Tan.
Tan had invested in a whole bunch of Chinese companies, some of which have been linked to the Chinese army, Reuters reported solely in April. It just isn’t unlawful for U.S. residents to carry stakes in Chinese firms until they’ve been added to the U.S. Treasury’s Chinese Military-Industrial Complex Companies List, which explicitly bans such investments.
Tan has been tasked to undo years of missteps that left Intel struggling to make inroads within the booming AI chip industry dominated by Nvidia, whereas investment-heavy contract manufacturing ambitions led to heavy losses.
In the roughly six months as Intel CEO, Tan made main strategic shifts that included divesting belongings, shedding workers and redirecting assets.
But the demand for Tan’s resignation will solely distract him from that activity, buyers and a former senior worker have advised Reuters.
“The meeting was a very interesting one,” Trump mentioned on Truth Social, including that his cupboard members and Tan are going to spend time collectively and produce ideas to him during the subsequent week. Trump final week with Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. Pool/ABACA/Shutterstock
Tan is now making an effort to reassure Trump that he stays the correct individual to revive the storied American chipmaker.
Tan met with Trump for a candid and constructive dialogue on the company’s dedication to strengthening US technology and manufacturing management, Intel mentioned in a assertion. The company mentioned it will work carefully with the administration to “restore this great American company.”
Trump’s intervention marked a uncommon occasion of a president publicly calling for a CEO’s ouster and raised questions on his control over company affairs.
This was additionally evident in an settlement calling for Nvidia and AMD to provide the US authorities 15% of income from China gross sales.
