GettyPresident Donald Trump has called upon the head of American chipmaker Intel to “immediately” resigning, accusing him of a problematic relationship for China.
In a social media post, he said that CEO Lip-Bo Tan was “highly controversial”, apparently, referring to the alleged investments of Mr. Tan, stating that the US says that the Chinese are tied to the army. It is uncommon for a President to demand the resignation of a corporate executive.
Mr. Tan was appointed in March, appointed to roam around a leading tech veteran of the US Chips industry, who recently fell behind the contestants.
The US government received billions of dollars from the US government as part of the US semiconductor manufacturing industry as part of the effort to rebuild.
In a statement on Thursday, Intel said it was investing significant in the US in the United States with Trump’s “America First Agenda”.
“Intel, Board of Directors, and Lip-Bo Tan are deeply committed to us to pursue national and economic security interests,” saying, “We are ready to have our constant engagement with administration.”
A natural American citizen born in Malaysia and grew up in Singapore, Sri Tan is an enterprise capitalist who is famous for his expertise in the semiconductor industry.
Investors recently updated, he said that the firm would withdraw its investment in manufacturing in the US to match the demand of customers. Intel has already cut thousands of jobs this year, as part of the firm’s effort to “right size”.
After Trump’s attack, shares in Intel fell over 3% after noon, which have been important for the first firm and preparing to increase tariffs on the chip industry.
“Intel’s CEOs are highly disputed and should resign immediately. There is no other solution to this problem,” Trump wrote,
It is not illegal for Americans to invest in Chinese firms.
But Washington has extended restrictions since Trump’s first term, as it pushes to break up trade relations between the US and China when it comes to advanced technology, as both Democrats and Republicans openly worry about national security.
Trump’s attack raised concerns aired by Republican Senator Tom Cotton this week One letter Intel’s board stated that Mr. Tan’s “Association raises questions about Intel’s ability” “American taxpayer to follow the dollar and follow the applicable security rules”.
Cotton pointed to the role of Shri Tan as the Chief Executive of the Tech firm Tennes Design System, which Closed in July and agreed to pay $ 140m The US allegations stated that its subsidiary in China repeatedly traded the country’s National Defense Technology University, causing a violation of US export control.
Mr. Tan was not convicted himself.
In a statement earlier this week, Intel defended his relatively new Chief Executive Officer, stating that Mr. Tan and the company were “deeply committed to the US’s national security and integrity of our role in the US defense ecosystem”.
Founder of Moore Insights and Strategy, industry expert Patrick Moorehed said that he felt that Trump was using a dispute over Mr. Tan’s relations for China to pressurize Intel on any other issue. He pointed to potential controversies about Intel’s investment in the US and reported a possible partnership with Taiwan’s firm TSMC supported by the White House.
“It is clear for me that there was some conversation between the two who did not like Trump,” he said. “Trump probably saw,” Okay, I have got a chance to turn on the heat with Intel on it. “
Trump is known for targeting business leaders with public criticism for unheard degrees with other presidents. But, even according to his standards, the demand to resign a private company leader is extraordinary.
Mr. Moorehead said that other technical officers who found themselves in Trump’s crosshair came up with a manner of “kissing the ring”, who indicate promises from firms such as Apple and Openai to make big investments in the US.
He said, “Intel probably misunderstood how important it was to come and appear with the White House.”
Trump said Trump, responding to critics far away, the White House told the BBC, “President Trump is fully committed to the security of national and economic security of our country. This involves ensuring that eminent American companies in state -of -the -art areas are led by men and women who can believe in American.”
Mr. Tan’s relations for China were investigated in the 2024 Congress report, the relationship between American investment firms and Chinese businesses.
He was also the subject of an investigation into a Reuters in April, which found that he had invested at least $ 200 in hundreds of Chinese companies, some of which are associated with the Chinese army. The investment was either individually made or although they had funds between 2012 and December 2024.
Trump’s associate, Republican Senator Berney Moreno att
But the conflict with Trump can combine the firm with challenges, as well as America chip construction, currently faces.
“Intel is hoping to build more chip ability for the US and is struggling to do so,” said Senior Fellow Janet Egan of Center for a New American Security said. “It is important that we achieve continuity of leadership to increase that ability.”
