U.S. President, Donald Trump, has demanded for the immediate resignation of Intel CEO Lip-Bu Tan, citing Tan’s alleged ties to Chinese firms as a conflict of interest.
President Trump’s comments came after Senator Tom Cotton raised concerns about Tan’s investments in Chinese companies linked to the Chinese military.
Tan reportedly invested at least $200 million in hundreds of Chinese advanced manufacturing and chip firms, some linked to the Chinese military.
Tan’s former firm, Cadence Design, sold products to a Chinese military university believed to be involved in simulating nuclear explosions. Cadence agreed to plead guilty and pay over $140 million to resolve US charges.
Tan ssid that he shares Trump’s commitment to advancing U.S
national and economic security. Intel’s board is “fully supportive” of the company’s transformation efforts and advanced chip manufacturing plans.
Some investors debate the precedent set by Trump’s public call for a CEO’s ouster.
Phil Blancato, CEO of Ladenburg Thalmann Asset Management, noted that Trump’s opinion has merit but questioned the appropriateness of presidential interference in corporate leadership
Trump emphasised the need for American companies to prioritise national security, saying, “President Trump remains fully committed to safeguarding our country’s national and economic security.”
The controversy highlighted tensions between U.S. national security and global tech business, potentially setting a precedent for executive accountability in the industry.
