Trump Responds to Intel CEO’s Resignation
President Trump expressed his approval of Lip-Bu Tan’s resignation during remarks on Sunday. He mentioned having a meeting with Intel’s CEO on Monday, describing it as “very interesting.”
In the wake of this news, shares of chipmakers saw a significant uptick, rising by 3% during after-hours trading.
Trump had called for Tan’s resignation just a week prior, labeling him as “very contradictory” regarding his ties to Chinese firms. This comment had stirred some uncertainty about Intel’s ongoing efforts to rebound.
In addition to Tan, Trump met with his Cabinet members, Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bescent. They are expected to present a proposal next week, as Trump mentioned in a post.
While praising Tan’s accomplishments, Trump remarked, “His success and rise are amazing.”
However, it’s worth noting that Tan has a history of investing in numerous Chinese companies, some with links to the Chinese military, which Reuters reported earlier this year. Though it’s lawful for U.S. citizens to invest in such companies, they haven’t been categorized under restrictions set by the Chinese Ministry of Finance.
Tan had been tasked with reversing Intel’s struggles in the competitive AI chip sector, largely dominated by Nvidia. Yet, his aspirations for high-investment contract manufacturing resulted in substantial financial setbacks.
Since becoming CEO nearly six months ago, Tan has initiated numerous strategic changes, including asset sales and workforce reductions. Yet, calls for his resignation may hinder his progress, according to investor sentiments and former senior executives.
Amid these changes, Tan seeks to assure Trump of his capability to revitalize Intel, claiming a commitment to bolstering U.S. technology and manufacturing. Intel issued a statement about their constructive dialogue regarding this goal.
Trump’s direct involvement in Tan’s situation is somewhat unusual, sparking concerns over the extent of presidential influence in corporate affairs. This incident also aligns with recent discussions around NVIDIA and AMD’s agreement to pay the U.S. government 15% of revenues from sales in China.
