Trump Calls for Intel CEO’s Resignation Over China Ties
President Donald Trump has requested Intel CEO Lip-Bu Tan to resign due to his connections with China, which adds to the challenges already facing struggling chipmakers. In a post on his social media platform, Trump stated, “Intel CEOs are in great conflict and must resign immediately. There is no other solution to this issue.”
This call for Tan’s resignation follows scrutiny from Republican Senator Tom Cotton of Arkansas. Earlier this week, Cotton sent an open letter to Intel’s board, questioning Tan’s relationships with the Chinese government.
Cotton, who chairs the intelligence committee and holds a significant position within the Republican leadership, expressed concerns regarding Tan’s long-standing role as CEO of Cadence Design Systems, a Silicon Valley software firm. Recently, Cadence agreed to pay $140 million for breaching U.S. export restrictions by selling products to China’s National University of Defense Technology.
In his correspondence, Cotton highlighted that companies like Intel, which receive government grants and expect substantial federal funding to boost domestic chip production in Ohio, are responsible for taxpayer dollars and must adhere to rigorous security regulations. He urged Intel’s board to provide Congress with clarity about Tan’s connections to China.
Intel defended Tan, arguing that the company does not pose a national security threat. Having taken over as CEO in March, Tan is focused on cutting costs and improving the company’s current operations. Yet, his prior experience as a venture capitalist who invested in Chinese tech firms before joining the semiconductor industry has raised concerns among lawmakers.
The Trump administration is aware of Intel’s ongoing challenges. The company has postponed manufacturing projects in Ohio as it struggles to compete in the AI sector while also working to stabilize its finances. Some officials are reportedly reconsidering their collaboration with Intel due to these difficulties.
It has been previously reported that Intel has conducted significant layoffs in an attempt to regain its competitive edge. The company announced it is nearing the end of a round of layoffs, expected to reduce its workforce by about 22% compared to mid-2025 levels. With around 96,000 employees at the end of June, Intel plans to cut approximately 24,000 positions, aiming to finish the year with around 75,000 workers after accounting for job losses and the sale of its Altera programmable chip business.
These layoffs are part of Tan’s larger strategy to streamline Intel’s operations and enhance efficiency. In a message to employees, Tan acknowledged the recent challenges, noting, “We are making difficult but necessary decisions to streamline the organization, promote greater efficiency, and increase accountability at all levels of the company.” The layoffs, which began earlier this summer, have already affected thousands in Oregon, where the local workforce is at a decade-low of around 17,600.
