Shares recover as Tan pushes back against ‘misinformation’ and says Intel is working with White House
Intel (NASDAQ: INTC) CEO Lip-Bu Tan has defended his record in a letter to employees after President Donald Trump publicly called for his immediate resignation, citing concerns over Tan’s past ties to Chinese companies.
In a post on Truth Social late Thursday, Trump wrote: “The CEO of Intel is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.”
The call came shortly after Senator Tom Cotton (R-Ark.) raised questions about Tan’s past investments and affiliations through his venture capital firm Walden International, as well as his prior role as CEO of Cadence Design Systems. In a letter to Intel’s board, Cotton questioned whether Tan had divested from Chinese semiconductor firms with links to the Chinese Communist Party and the People’s Liberation Army, arguing such ties could undermine Intel’s ability to manage US taxpayer funds responsibly—particularly its nearly US$8bn CHIPS Act grant.
Tan, who became CEO in March after Pat Gelsinger’s ousting, responded in an internal memo:
“I want to be absolutely clear: Over 40+ years in the industry, I’ve built relationships around the world and across our diverse ecosystem—and I have always operated within the highest legal and ethical standards.”
He said Intel is engaging with the Trump administration to “ensure they have the facts” and added that the company remains committed to advancing US national and economic security. “The Board is fully supportive of the work we are doing to transform our company,” Tan wrote.
Intel shares fell 3% on Thursday in response to the controversy, but recovered slightly on Friday, up 1.01% at US$19.97.
A statement from Intel reinforced the company’s alignment with Trump’s “America First” agenda, highlighting its investments in domestic semiconductor manufacturing.
Still, the issue has raised political and market sensitivities. Analysts at Bernstein noted that while Tan’s experience and network are widely respected in the semiconductor industry, his China ties present an “increasingly bad look” under the current administration. “Unfortunately, unlike other tech CEOs, Lip-Bu does not appear to have cultivated the kind of personal relationship with Trump that would help to assuage his ire,” wrote analyst Stacy Rasgon.
Tan’s appointment in March was initially welcomed by markets, with Intel shares jumping 15% on the news. However, the company has since faced mounting pressure, including a 15% workforce cut and the scrapping of its 18A foundry plans for third-party customers—a move seen as central to its effort to catch up with rival TSMC.
The Wall Street Journal reported Thursday that Tan had clashed with several board members, including chairman Frank Yeary, over Intel’s long-term manufacturing strategy. In his memo, Tan stressed that the board remains behind the current transformation plan.
Intel’s stock is up just 1.8% year-to-date, underperforming rivals including AMD, Broadcom, and Nvidia.
