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Trump demands immediate resignation of Intel CEO over China ties, says ‘no other solution’
President Trump has called for the resignation of Intel's new CEO, Lip-Bu Tan.
President Donald Trump on Thursday demanded the immediate resignation of Intel’s newly appointed CEO, Lip-Bu Tan, citing what he described as “highly conflicted” ties to Chinese technology firms. In his Truth Social Post, he wrote, “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem. Thank you for your attention to this problem!” Intel shares faced heat as they fell sharply in premarket trading following Trump’s statement, with the stock last down around 5%, as reported by NBC News. See Trump's post here.
Why is Trump urging for Intel CEO's resign?
Trump's demand for Lip Tu Ban's resignation comes a day after a letter was sent to Intel's board by Senator Tom Cotton (R-Ark.). The letter raised concern about Ban's connection to Chinese companies, which are linked to the Communist Party and the Chinese military. Cotton specifically pointed to the $8 billion in federal funding Intel received under the CHIPS Act. He added that Tan's links to China “raise questions about Intel's ability to fulfill these obligations,” as reported by Axios.
Tan came into Intel's CEO position in March, and late last month, the company reported stronger-than-expected revenue in Tan’s early months as CEO, signaling a solid start to his tenure. However, Intel also announced cuts to its factory construction plans.
