Catenaa, Thursday, August 07, 2025- Intel shares fell by over 2% on Thursday after President Donald Trump called for the chipmaker’s CEO to resign immediately due to national security concerns.
In a Truth Social post, Trump said Intel Chief Executive Lip-Bu Tan “is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.”
In the last month period since June 07, Intel shares have dropped by 9%, and the share is down by less than 1% so far in the year.
Tan was named as Intel CEO in March. This week, US Republican Senator Tom Cotton questioned his ties to Chinese companies and referenced a past criminal case involving Cadence Design, where Tan was CEO until 2021, Reuters reported.
Cotton wrote to Intel’s chair to “express concern about the security and integrity of Intel’s operations and its potential impact on U.S. national security,” Reuters said.
Writing to “express concern about the security and integrity of Intel’s operations and its potential impact on US national security,” Cotton asked in the letter to Intel chairperson Frank Yeary whether the company’s board was aware of the subpoenas sent to Cadence during Tan’s time there as CEO before Intel hired him.
He also asked whether Intel’s board required Tan to divest from chip firms in China linked to the Chinese military or Communist Party, and if Tan adequately disclosed other ties to Chinese companies due to Intel’s involvement in the Secure Enclave program, an initiative designed under the Biden administration to ensure a secure supply of microelectronics for defense.
Because of Intel getting federal funding under the initiative, Cotton questioned Yeary in the letter about Tan’s disclosures related to investment, professional roles or other ties to Chinese companies.
In a statement, 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 US defense ecosystem.” The company said it would address the matters in the letter to the Senator.
In April, Reuters reported that Tan, himself or through venture funds he has founded or operates, has invested in hundreds of Chinese companies, some of which are linked to the Chinese military.
The Intel CEO invested at least $200 million in hundreds of Chinese advanced manufacturing and chip firms between March 2012 and December 2024, Reuters found.
