Shares of U.S. tech giant Intel dropped sharply on Thursday after President Donald Trump publicly demanded the immediate resignation of CEO Lip-Bu Tan. In a post on his social network Truth Social, Trump described the Intel chief as a “very conflicted man” and declared that resignation was “the only solution.”

The call comes amid growing concerns about Tan’s financial and business ties to Chinese companies—some reportedly linked to China’s military—raising questions about Intel’s trustworthiness and national security implications.

Political Pressure and Rising National Security Concerns

Tan only took over as Intel’s CEO in March, following the departure of Pat Gelsinger as the company struggled to reverse a steep decline in revenue. But his short tenure has already been clouded by political scrutiny.

Just a day before Trump’s statement, Republican Senator Tom Cotton sent a letter to Intel’s board questioning Tan’s background and expressing fears that his connections “may compromise the integrity and security of Intel’s operations” and thus impact U.S. national security. Cotton also cited past criminal proceedings related to Cadence Design, Tan’s former company, and emphasized Intel’s responsibility as a recipient of taxpayer-funded government contracts.

Trump’s post added fuel to the fire. Following the announcement, Intel’s stock fell 5% in premarket trading.

An April report from Reuters revealed that Tan had invested hundreds of millions of dollars into Chinese companies, either directly or through venture funds he founded or managed. Between 2012 and 2024, he reportedly funneled over $200 million into advanced manufacturing firms in China.

Intel in Crisis: Cost-Cutting, Layoffs, and Lost Market Share

Once a dominant force in chipmaking, Intel is now undergoing a sweeping restructuring effort after losing ground to Taiwan’s TSMC and falling behind Nvidia in the booming AI chip sector.

The company has entirely missed out on the most lucrative growth area—AI hardware—and has also been losing ground in data center infrastructure. Nvidia reported $18.4 billion in data center revenue in Q3 2024 alone, while AMD is expected to generate more than $2 billion in 2025 from its MI300 chip. Intel, by contrast, remains far behind.

As part of its cost-cutting strategy, Intel aims to reduce its headcount to 75,000 employees by year-end—down from nearly 110,000 in 2024. In June, the company also shut down its automotive chip division and announced plans to lay off 20% of its silicon plant staff.

Internal tensions escalated further when three top executives from Intel’s manufacturing division recently departed. The leadership shake-up has intensified calls for a change at the top, as critics argue that Intel is losing both technological leadership and investor confidence—and that Tan has yet to prove he can lead the company back to the forefront of the industry.

#Intel , #TRUMP , #USPolitics , #NVIDIA , #TruthSocial

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