Intel CEO Lip-Bu Tan faced a whirlwind of political hot air this week when President Donald Trump took to Truth Social to demand his immediate resignation.
Tan, unfazed, fired back with a companywide email that was less “please, sir, I beg you” and more “I’ve got this, team.” With Intel’s board cheering him on, Tan’s not going anywhere, but the drama’s got Wall Street clutching its pearls and Intel’s stock doing a 3% nosedive.
The kerfuffle kicked off when Trump, never one to shy away from a keyboard tantrum, labeled Tan “highly CONFLICTED” and insisted he step down pronto. This came hot on the heels of Senator Tom Cotton stirring the pot with a letter to Intel’s board, pointing fingers at Tan’s past investments in Chinese firms and his old gig at Cadence Design Systems.
Apparently, Cadence got caught slipping tech to a blacklisted Chinese military university, which is about as welcome in Washington as a skunk at a picnic.
Tan, in his email to Intel’s troops, didn’t just shrug off the accusations—he gave them a firm handshake and sent them packing. “I’ve always operated within the highest legal and ethical standards,” he wrote, probably while sipping a coffee and adjusting his CEO badge.
He reminded everyone that he’s been calling the U.S. home for over 40 years, making him as American as apple pie, or at least a really good microchip.
The timing of this hullabaloo couldn’t be worse for Intel, which is knee-deep in a turnaround plan that’s more ambitious than a squirrel trying to hoard all the acorns in Central Park.
Tan’s been steering the ship since March 2025, pushing for high-volume manufacturing of fancy new semiconductors right here in the USA. He called this goal a “testament” to his team’s hustle, which is corporate-speak for “you folks are killing it.”
Meanwhile, Trump’s been waving his tariff stick, threatening a 100% tax on imported chips unless companies build factories on American soil.
Intel, already cozying up with billions in CHIPS Act cash to build plants in Ohio and Arizona, probably thought it was on Team Trump’s good side. But with Cotton’s letter and Trump’s post, it’s clear Intel’s caught in a geopolitical game of whack-a-mole.
Tan’s not sitting back twiddling his thumbs. He’s engaging with the Trump administration to “ensure they have the facts,” which sounds like a polite way of saying, “Let’s all calm down and talk this out over some spreadsheets.”
Crisis communication experts told Business Insider that staying silent would’ve been “potentially fatal” for Intel, so Tan’s email was less a choice and more a survival tactic.
Intel’s stock took a hit, dropping over 3% on Thursday, as investors got jittery about the political spotlight shining on their chipmaking darling. The market’s reaction was less “oh no, the sky is falling” and more “can we please get back to making money?”
Still, Tan’s email was a masterclass in keeping the troops rallied, ending with a peppy, “I’m proud to be on this journey with you.”
The backstory here is juicier than a Silicon Valley gossip column. Reuters reported in April that Tan, through his venture firm Walden International, poured over $200 million into hundreds of Chinese companies between 2012 and 2024, some with ties to China’s military.
Cotton’s letter hammered on this, questioning whether Intel’s board made Tan divest those holdings before handing him the CEO keys.
Tan’s defenders argue he’s already ditched those investments, though the details are murkier than a foggy morning in San Francisco.
Critics, meanwhile, are waving red flags, worried that Intel’s role in U.S. defense contracts and its $8 billion CHIPS Act haul could be at risk with Tan at the helm. It’s a high-stakes chess match, and Tan’s playing it cool, insisting his reputation is built on trust.
Intel’s not just fighting political battles—it’s also trying to claw its way back to the top of the chipmaking heap. Nvidia’s been stealing the AI spotlight, and Intel’s foundry business is bleeding cash faster than a tech bro buying NFTs. Tan’s plan involves slashing jobs, selling off non-core assets, and praying the new factories don’t hit any snags.
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