Intel CEO asked to resign by Donald Trump

US President Donald Trump publicly demanded the immediate resignation of Intel CEO Lip‑Bu Tan on August 7, 2025. In a post on X, Trump called Tan “highly conflicted” adding that he must resign  immediately. “There is no other solution to this problem. Thank you for your attention to this problem!,” he wrote. The pressure intensified a brewing controversy over Tan’s extensive financial and professional involvement with Chinese tech entities. Following the news, Intel share price fell more than 3% in trade, according to Google Finance data.

Let's unpack the political and national security storm surrounding Intel CEO Lip-Bu Tan, following public calls for his resignation over China-linked investments. This blog also explores how this controversy adds pressure to Intel’s ongoing restructuring amid financial strain and strategic uncertainty.

Why is Intel CEO in the Crosshairs?

• Investments in Chinese Firms: Between 2012 and 2024, Tan, either personally or through venture funds he founded or managed, invested over $200 million in hundreds of Chinese advanced manufacturing and semiconductor companies, including some reportedly linked to the Chinese military. (Reuters)
• Cadence Design Systems and Export Violations: Arkansas Republican Senator Tom Cotton raised concerns and pressed the chair of Intel’s board over Intel CEO’s alleged connections to China through a letter citing Tan’s previous leadership at Cadence Design Systems, a company that recently pleaded guilty to violating U.S. export controls by selling chip-design tools to a Chinese military university.
• National Security Considerations: Intel is a major beneficiary of U.S. government support, having secured nearly $20 billion in federal CHIPS Act grants and loans, and participating in initiatives like the Secure Enclave program aimed at protecting the national microelectronics supply chain. Senator Cotton’s inquiry asked whether Tan’s entanglements jeopardize Intel’s role as a secure steward of taxpayer-backed innovation.

In response, Intel did issue a statement affirming that “Intel and Tan are deeply committed to the national security of the U.S. and the integrity of our role in the U.S. defense 

Trump Administration’s Skepticism of China-linked Tech Executives

Under Trump’s first term, the administration made headlines for targeting TikTok, owned by Beijing-based ByteDance. Trump issued executive orders seeking divestiture, arguing that TikTok posed severe national security risks, citing concerns over data collection, potential surveillance, and propaganda targeting U.S. users.

TikTok countered by pointing to measures like Project Texas—designed to localize U.S. user data, and legal actions asserting that bans violated due process. Courts ultimately blocked the ban.

These events spurred legislative efforts like PAFACA and the broader RESTRICT Act, aimed at giving authorities power to block transactions or services from “foreign adversaries.” Critics, including the ACLU, warned such laws risk broad censorship and executive overreach.

Why Does This Matter To Intel?

As with TikTok, the Intel CEO controversy speaks to broader unease about Chinese-linked executives and their influence within critical U. tech companies. Intel’s dual role, as both a strategic semiconductor provider and a CHIPS Act recipient, makes this episode particularly sensitive.

Intel’s Strategic Reset: An Already Tumultuous Corporate Landscape

Source: Intel IR

What Intel’s Earnings Reveal

• No Growth at the Top Line: Flat revenue reflects Intel’s inability to capitalize on booming AI and server demand.
• Heavy Costs, Minimal Returns: Restructuring and impairment charges pushed Intel into deep GAAP losses, with even adjusted earnings in the red.
• Execution Uncertainty Ahead: Wide Q3 guidance range signals continued volatility and lack of near-term confidence.
• Capital Pressure: $18B in capex shows Intel is betting big on transformation—but the losses leave little room for error.

Intel’s Operational Overhaul In Trouble?

After stepping in as CEO in March 2025 following Pat Gelsinger’s exit, Tan launched deep restructuring steps, cutting around 15% of the workforce, halting planned mega-fab projects, and pursuing a leaner, more agile organizational model.

Still, the company lags behind semiconductor rivals like TSMC and AI-chip leader Nvidia. Moreover, Fitch Ratings downgraded the firm’s credit outlook, citing weak market demand, sluggish execution, and unclear path to profitability. Despite being a trusted brand, Intel’s financial health remains fragile, and now distracted by geopolitical and reputational risks surrounding its CEO. 

Intel now faces a high-stakes balancing act: executing a deep strategic overhaul under Tan’s leadership while navigating a fraught political landscape questioning his allegiances and judgment. Unless Intel successfully manages this, its back to competitiveness may be compromised.

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