Intel stock tumbles after Trump demands CEO’s resignation
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Washington: Shares of Intel fell sharply on Thursday after President Donald Trump publicly demanded the resignation of CEO Lip-Bu Tan, citing alleged conflicts of interest over Tan’s reported links to Chinese semiconductor firms.
“The CEO of Intel is highly CONFLICTED and must resign, immediately,” Trump wrote on Truth Social. “There is no other solution to this problem. Thank you for your attention to this problem!”
Trump’s remarks followed a letter from Senator Tom Cotton to Intel Chairman Frank Yeary, expressing deep concern about Tan’s investments and prior roles in companies said to be connected with the Chinese Communist Party and the People’s Liberation Army. Cotton questioned whether Tan had divested from these firms to resolve any potential conflicts of interest.
In his letter, Cotton highlighted Tan’s previous leadership at Cadence Design Systems, a tech firm that, in July, admitted to violating US export controls by selling products to China’s National University of Defence Technology.
“Mr. Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms,” Cotton stated. “At least eight of these companies reportedly have ties to the Chinese People’s Liberation Army.”
Cotton also criticised Intel’s acceptance of US government funding under the CHIPS Act, which awarded the company over $8 billion to expand domestic chip production, stating that firms receiving taxpayer money must uphold strict national security standards.
Intel did not immediately issue a comment in response.
Following the developments, Intel's stock dropped 3%, even as broader markets, including the tech-heavy Nasdaq, posted gains.
Founded in 1968, Intel was once a dominant force in the personal computing era but fell behind as the industry shifted toward mobile computing following Apple’s release of the iPhone in 2007. In recent years, its challenges have deepened with the rise of artificial intelligence, a space where rivals like Nvidia now lead with in-demand chip technologies.
Since taking over as CEO in March 2025, Tan has initiated major cost-cutting measures at Intel, including layoffs and reductions in domestic chip manufacturing efforts, in a bid to turn around the company’s lagging performance.
With PTI inputs
