Intel shares tumbled Thursday after President Donald Trump demanded the immediate resignation of the company’s new CEO, Lip-Bu Tan, citing concerns over national security and alleged conflicts of interest.
In a post on his social media platform Truth Social, Donald Trump wrote that Lip-Bu Tan “is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.” Following the post, Intel’s stock dropped sharply in premarket trading, falling as much as 5%.
Tan, who took over as CEO of Intel in March, has quickly become the focus of political scrutiny, most notably from Arkansas Republican Senator Tom Cotton.
Senator Cotton, a known China hawk, sent a letter earlier this week to Intel’s board chair, Frank Yeary, questioning Tan’s past affiliations and business ties in China.
“Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations,” Cotton wrote. “Mr. Tan’s associations raise questions about Intel’s ability to fulfill these obligations.”
Citing a Reuters investigation, Cotton expressed concern over Tan’s investments in “hundreds of Chinese tech firms,” including at least eight with reported links to the Chinese military.
Cadence Controversy Adds Fuel to the Fire
Before taking the reins at Intel, Tan served as CEO of Cadence Design Systems, a U.S.-based software company specializing in electronic design automation (EDA) for semiconductors. This background has now come under increased scrutiny.
Cadence recently pleaded guilty to violating U.S. export controls and agreed to pay a $140 million penalty for illegally selling chip-design software to a Chinese military-affiliated university. The transactions occurred while Tan was still CEO.
Cotton’s letter presses Intel’s board on whether the company has addressed this issue internally, particularly concerning Tan’s role during the time of the violations.
Intel’s Involvement in Defense Raises Stakes
Tan’s appointment comes at a sensitive time. Intel has been awarded nearly $8 billion in federal grants under the CHIPS and Science Act, legislation designed to bolster domestic semiconductor manufacturing and reduce U.S. reliance on foreign suppliers, especially from China.
Furthermore, Intel is currently a key participant in a Pentagon initiative to develop secure chips for defense and intelligence operations, making the questions surrounding Tan’s ties even more urgent in the eyes of national security advocates.
Cotton questioned whether Tan had disclosed all his Chinese investments to U.S. officials and whether he had divested from any potentially “concerning entities.”
Intel Responds: “Deeply Committed” to U.S. Security
In response to Cotton’s inquiry, an Intel spokesperson said: “Intel and Mr. Tan are deeply committed to the national security of the United States and the integrity of our role in the U.S. defense ecosystem. We appreciate Senator Cotton’s focus on these shared priorities. We look forward to addressing these matters with the Senator.”
Who Is Lip-Bu Tan?
Lip-Bu Tan was appointed CEO of Intel in March 2025, following the resignation of former CEO Pat Gelsinger. Gelsinger stepped down after what the company described as a “challenging year,” marked by missed earnings, market share loss to rivals like AMD and NVIDIA, and delays in new chip technologies.
Tan, a veteran in the semiconductor industry and a prominent investor in tech startups, was expected to bring renewed innovation and speed to Intel’s product development, but now faces mounting political pressure over his past affiliations.
